Riot Blockchain company, whose shares are traded on the Nasdaq, hit the headlines last year, after it reoriented to the sphere of brokchain and crypto. The US Securities and Exchange Commission wants to know more about its activities. This is reported by Coindesk.
The announcement was made in an annual report. The company said that it received a summons from the SEC, in which the service requested "certain information".
As part of its review of the Company's public filings, the Securities and Exchange Commission...has inquired about certain of the Company's assets' classification as, and amount of, possible Investment Company assets. The Company intends to fully cooperate with the SEC request.
The fact that the American regulator became interested in the activities of Riot Blockchain isn't surprising. In January, the SEC announced that it will check the companies that have reoriented to the blockchain area in recent months on the wave of investors' interest in this topic.
The SEC is looking closely at the disclosures of public companies that shift their business models to capitalize on the perceived promise of distributed ledger technology and whether the disclosures comply with the securities laws, particularly in the case of an offering.
Shares of Riot Blockchain experienced a recovery in December, peaking at $ 40. On Tuesday, trading on shares of Riot Blockchain Inc closed at around $ 7.30, according to Google. Earlier, a group claim was filed against Riot Blockchain because of the violation of the Securities Exchange Act of 1934.
On March 31, the company announced the purchase of a futures broker and announced that it intends to open a crypto and futures exchange in the US.
Also in its report the company cites information that its shares can wait for delisting on the Nasdaq exchange because it did not hold an annual meeting, as required by the rules of the exchange.