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Philip Frost settling down the case for over 5 million dollars

riot blockchain inc fraud case

On Thursday reports revealed that Phillip Frost has come to an agreement with the Security Exchange Commission (SEC) regarding the allegations. Without giving any statement regarding the matter the SEC agreed to take a hundred thousand dollars fine instead. Phillip Frost did the same and also didn’t give any statements regarding the issue and agreed to pay over five million dollars ($5.5m) as fine.

Frauds and lies are a key element besides which that the crypto space would not be complete. Recently a team of ten organizations and people were caught committing frauds. These frauds earned them twenty-seven million dollars ($27m). The fraud consisted of selling worthless and illegal stocks to the buyer.

As a result, the buyer was stuck with having bought a digital asset of no redeeming value. In September they were accused by the SEC and were subjected to face charges. SEC revealed in a report that the team leader was Barry Honig. Barry Honig used to be the largest shareholder of the Riot Blockchain, Inc. The team also had John O’Rourke. He was the CEO of the blockchain organization till last year. The team was committing a pump-and-dump fraud, and Phillip Frost was also revealed to be a participant.

The Riot was originally a biotechnology company known as Bioptix, Inc. The institution’s goal was to develop veterinary diagnostic tools. On the 4th of October, Bioptix decided to change its route to the blockchain industry and renamed itself Riot Blockchain Inc. But soon enough in February of 2018, the Riot blockchain suffered bankruptcy. Many believe that the pump and dump case rose out of this bankruptcy.

Johnson Go

Johnson Go

Blockchain enthusiast, project management specialist, writer and crypto investor. JG deals mostly with problems and solutions of crypto projects and provides market outlook for investments. He contributes his analytical skills to projects.

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