Securities And Exchange Commission (SEC) Issues Subpoena To Riot Blockchain
The Securities and Exchange (SEC) issued an April 9th subpoena to cryptocurrency startup Bioptix, whose stock price skyrocketed after the company changed its name to Riot Blockchain.
Riot Blockchain, formerly Bioptix, was known for its veterinary products patent and new ways of disease testing. The company now focuses on bitcoin mining and establishing a cryptocurrency for future brokerage operations.
In February, CNBC investigated the SEC filing and found multiple red flags while analyzing the SEC filings, such as annual meetings that had been postponed till the last minute, possible insider selling after the company’s name change, and evidence that a major shareholder was selling its position as new investors flooded in.
John O’Rourke, Chairman of Riot Blockchain, accused CNBC of publishing “a negative one-sided piece.” Riot Blockchain released its 10k report in which the company stated it “believes that many companies engaged in blockchain and cryptocurrency businesses have received subpoenas from the SEC which presents an additional industry risk.”