Riot Blockchain Accused of Scheming to Capitalize on Public Interest in Cryptocurrency
According to the complaint, on October 4, 2017, the company announced it was changing its name from Bioptix, Inc. to Riot Blockchain, Inc. (RIOT) to coincide with Riot’s shift toward becoming a strategic investor and operator in blockchain technologies. Shortly afterwards, on December 27, 2017, Riot announced that it was canceling the annual meeting of stockholders scheduled for the following day to allow time for stockholders to vote on certain proposals. On January 31, 2018, Riot suspiciously announced that it was again postponing the annual meeting to achieve a quorum on the proposals to be approved. On February 16, 2018, the reasons for Riot’s repeated postponement became clear. CNBC reported that Riot had no real underlying blockchain business plan, paid more than $11 million for cryptocurrency mining equipment worth only $2 million, and apparently had no intent of ever holding its annual meeting. Since news of Riot’s questionable decisions became public, its stock has fallen over 42% to close at $9.90 per share on February 26, 2018.
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