- Riot Blockchain Inc. has revealed that the SEC is continuing its investigation against them
- The investigation began with a subpoena served to them in April 2018
- The company’s latest quarterly filings reveal that they have made a loss of $6.2 million in the last quarter
The Securities and Exchange Commission’s (SEC) investigation into Riot Blockchain Inc. is still ongoing according to their recent quarterly filing.
Their May quarterly finding stated that they received their subpoena on the April 9, 2018, and that it was “pursuant to a formal order of investigation.”
Riot, on their part, have appeared to be cooperating with the SEC.
Last month, the SEC terminated its Section 8(e) examination of certain aspects of Riot’s registration statement. Typically, this investigation would have led to the SEC blocking the sale of the entity’s shares. However, it was not deemed necessary in this case.
Riot withdrew one registration statement and terminated another and from all accounts, has been fully compliant with the SEC.
“We continue to work with the SEC and other regulators among all our business lines to make sure we are operating within the frame they would like us to work,” said Chris Ensey, Riot Blockchain’s interim CEO who had no further comment.
The latest quarterly filing also disclosed that they received comment letters from the SEC.
According to them,
“The comments raise matters related to, among other things, the unsettled nature of accounting treatment for the Company’s cryptocurrency mining and the fair value method selected by the Company.”
State of Affairs
The latest filling made other revelations. For example, the company made $2.3 million in cryptocurrency mining revenue in the Q3 2018 and a net loss of $6.2 million.
This is actually an improvement from the previous quarter when the company made $2.8 million in revenue and $24.4 million in losses.
They have also made some progress in their mining efforts, having mined 319 bitcoins and 1,182 litecoins compared to the previous quarter when they produced 348 bitcoins and 318 litecoins.
“We are pleased with the results of the [mining] team,” Ensey said.
The losses they have experienced is in part to legal fees, they have stated. Besides the issue with the SEC, they also have a case with the U.S. District Court in Trenton, New Jersey.