Riot Blockchain issued subpoena by SEC

The Company believes that many companies engaged in blockchain and cryptocurrency businesses have received subpoenas from the SEC which presents an additional industry risk.

Mike Richardson
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The Castle Rock cryptocurrency company, Riot Blockchain has said that the U.S. Securities and Exchange Commission (SEC) has issued a subpoena on April 9th asking for ‘certain information’

In the company’s first 10K report, since changing its name, the company believes that, the subpoena has more to do with its decision of entering into the blockchain and cryptocurrency sector, they have said it “intends to fully cooperate with the SEC request.”

In its Annual report, Riot has notified its shared holders and has written;

“The Company has notified its insurance carrier although there can be no assurance that the costs of compliance with the subpoena or any related matters will be eligible for insurance coverage.  Nevertheless, response to the subpoena will entail cost and management's attention. “

Adding:

“The Company believes that many companies engaged in blockchain and cryptocurrency businesses have received subpoenas from the SEC which presents an additional industry risk. The existence of an investigation of the Company specifically and the industry generally could have a materially adverse effect on the Company, its business or operations, and the industry as a whole.”

Bioptix, a biotech company known for having veterinary products patent and developing new ways to test for disease(s) adopted its new term du jour name, Riot Blockchain. Armed with its new name, the company announced that it would shutter parts of its business and that they would begin bitcoin mining and establish a cryptocurrency exchange for future brokerage operations. As a result, the company share price skyrocketed by more than 600 percent, becoming Colorado’s top performing stock of 2017.

"As cryptocurrencies have grown in both popularity and market size, governments around the world have reacted differently to cryptocurrencies, with certain governments deeming them illegal, and others allowing their use and trade but, in some jurisdictions, such as in the U.S., subject to extensive, and in some cases overlapping, regulatory requirements, as well as unclear and evolving requirements." 

The company said that it is not profitable and expects "to continue to incur losses for the foreseeable future, and these losses could increase as we continue to develop our business.'