SEC Probe on Biotech Company-Turned-Crypto 'Still Ongoing'

Riot Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term (Nasdaq: RIOT), formerly a biotech company that saw its share price skyrocket when it refocused on Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, said the US regulators’ investigations in its alleged “pump-and-dump” scheme are "still ongoing."

Riot first revealed in April that the SEC had sent it a subpoena for information. The SEC is specifically interested in the information contained in three registration statements. However, the company announced in October it has “withdrew one registration statement and its amended version in question and terminated the other.”

Although its rebranding might seem like a minor thing, the change caused the company’s share price to jump from under $5 to near $50 in a matter of days. The company's blockchain involvement has also drawn scrutiny from the Securities and Exchange Commission.

According to Riot Blockchain's latest quarterly regulatory filing, the company is engaged in conversations with the staff of the SEC about their concerns and intends to cooperate fully with the examination.

Bleak Business Highlights

Riot reported $2.8 million of revenue and a net loss of $24.4 million for the second quarter. In the January-March quarter, the former biotech company, which entered the cryptocurrency business in October 2017, brought in less than $1 million in revenue, according to its filing in May.

The company had $1.6 million in cash as of September 30, down from $1.7 million at the end of the second quarter, and from $41.7 million in December, according to the two most recent quarterly filings.

This is not the first time a blockchain-related company got in trouble due to a foray into the cryptocurrency-inspired technology.

Last year, the US securities watchdog also suspended another company tied distantly to the cryptocurrency industry after temporarily halting trading in shares of CIAO Group, citing concerns over the Nevada technology company’s planned initial coin offering (ICO).