(Nasdaq: RIOT), formerly a biotech company that saw its share price skyrocket when it refocused on cryptocurrencies, 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, but 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 .
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 January-March quarter, the former biotech company that 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 of cash as of September 30, down from $1.7 million in cash at the end of the second quarter, and down from $41.7 million in December, according to the two most recent quarterly filings.
This is not the first time a blockchain-related company has 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).
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