The Securities and Exchange Commission (SEC) has now zeroed in on the prominent Bitcoin mining company, Marathon Digital, over alleged violations of securities laws.
Marathon Subpoenaed By SEC
In a recent press release, the Bitcoin mining company Marathon Digital Holdings revealed that it had been subpoenaed by the SEC as a part of its ongoing investigation of the Montana Data Center involving the potential violations of securities laws.
Marathon Digital, which is the second largest publicly traded Bitcoin miner in the US, was subpoenaed by the SEC to produce documents and information related to the company’s operations. Marathon has stated that it intends to cooperate fully with the SEC’s investigation.
Marathon’s Regulatory Troubles
The company filed its quarterly earnings report on Wednesday, wherein it also shared the news of the subpoena.
“The Company received an additional subpoena from the SEC on April 10, 2023, relating to, among other things, transactions with related parties. We understand that the SEC may be investigating whether or not there may have been any violations of the federal securities law. We are cooperating with the SEC.”
This is not the first time Marathon has come under scrutiny from regulators. The company and its executives were subpoenaed back in September 2021, through which the SEC tried to gain access to the documents pertaining to the company’s Montana-based facility.
Additionally, around a couple of months back, the country was also in the news for internal accounting issues, which resulted in them reissuing several financial statements.
CEO Calls Out “Energy Concerns”
The SEC’s investigation of Marathon comes at a time of increasing scrutiny of the cryptocurrency industry by regulators around the world. Last month, the SEC warned investors about the risks of investing in cryptocurrencies, including the possibility of fraud and market manipulation. The agency has also taken action against a number of cryptocurrency companies in recent years, including Ripple Labs, Coinme BitConnect, and Coinbase.
Many regulators and government bodies have shown concerns over the high carbon footprint and energy demands of mining operations.
However, Marathon’s CEO Fred Theil recently questioned these perspectives claiming that industrial emissions are of significantly greater concern for their environmental impact.
He tweeted,
“Why focus on the environmental impact of the energy used by bitcoin mining when the heavy industry is responsible for around 22 percent of global CO2 emissions…After targeting bitcoin miners, will the administration propose an energy tax on generative AI data centers to protect the environment and jobs?”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2023/05/sec-targets-btc-miner-alleges-securities-violation