Shares in Overstock sank about 10% after the online retailer’s cryptocurrency-focused subsidiary, tZero, said the US Securities and Exchange Commission was investigating its plan to raise $250 million by offering digital tokens.
It has raised $100 million from 1,100 purchasers of tokens, but these haven’t yet been issued, the company said, and there is no assurance that it will do so. The Securities and Exchange Commission has asked it to “voluntarily provide certain documents related to the offering and the tokens in connection with its investigation.”
“While the SEC is trying to determine whether there have been any violations of the federal securities laws, the investigation does not mean that the SEC has concluded that anyone has violated the law. Also, the investigation does not mean that the SEC has a negative opinion of any person, entity, or security,” it added.