CNBC Investigates Public Company Riot Blockchain

CNBC Investigates Public Company Riot Blockchain

Blockchain
February 17, 2018 by Bitzamp
360
CNBC Investigates Public Company Riot Blockchain Riot has not been in the cryptocurrency industry for long. Until October, it’s name is Bioptix, and it’s known to have a patent for veterinary products and to develop new ways to test the disease. This might sound a bit like the type of Blockchain Company newly struck to
Bitzamp

CNBC Investigates Public Company Riot Blockchain
Riot has not been in the cryptocurrency industry for long. Until October, it’s name is Bioptix, and it’s known to have a patent for veterinary products and to develop new ways to test the disease.
This might sound a bit like the type of Blockchain Company newly struck to the SEC’s attention.

SEC Chairman Jay Clayton said;

“Nobody should think it is OK to change your name to something that involves blockchain when you have no real underlying blockchain business plan and try to sell securities based on the hype around blockchain,”

Speaking of generalities the SEC refuse to comment on CNBC about Riot Blockchain.
According to SEC documents, the company purchased $ 11 million worth of equipment, but paid more than $ 11 million for equipment worth just $ 2 million.
After the story was released on Friday, Riot Blockchain CEO John O’Rourke accused CNBC of publishing a one-sided story.

In a letter to shareholders O’Rourke stated;

“We have made progress in creating a variety of investment to secure digital assets”,”It’s not uncommon for companies to pivot and change their business strategy.”

Despite Riot Blockchain company in red, its annual meeting was fixed twice to take place at the swanky Boca Raton Resort and Club in Florida on December 28. With less than one day’s notice the meeting was postponed to be held on Febuary 1.
According to documents filed by the SEC, Barry Honig may be behind the Riot Blockchain because it explained why a company headquartered in Colorado could suddenly host its annual meeting in Boca Raton. It would certainly be convenient for Honig since his office is a short drive from the hotel.

Honig told CNBC by phone,”My history of investing’s pretty good, I invest in public companies, It was an investment where I had a return. And I sold some shares. There’s nothing wrong with doing that.”

Honig became active in Riot in April 2016 when it was a veterinary testing company with a different name. He led a militant campaign to replace the board of directors in September 2016 and won the fight in January 2017.After his victory, the lawyers said red flags began to appear.

Until January, Honig had a large website filled with good descriptions of his investment and what he does when he gets involved in companies.
“Typically, Barry Honig invests his hard-earned money in a business, and he also advises the company on a variety of issues, including who should lead the company in the future of its business. Investments, goals and deadlines for the company to work towards, and a plan for the best way to achieve these goals.
A visit to the site now only reveals the text: “Under construction.


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