SEC Investigates B. Riley's Bitcoin Mining Investments Amid Co-Conspirator Probe

An undisclosed investigation by US authorities is reportedly underway regarding investment bank B. Riley's connections to Brian Kahn, a key figure in an ongoing Department of Justice (DOJ) criminal case. The nature and extent of the inquiry remain undisclosed.

Bank's Response: No Knowledge of SEC Probe

B. Riley, responding to the reports, released a statement asserting no awareness of any SEC investigation. The bank expressed a commitment to full cooperation if an investigation were to unfold. It dismissed the Bloomberg report as baseless claims echoing the sentiments of short traders who had previously targeted the company.

Cryptic Connections: Questions Raised on Impact

The investigation, reported by Bloomberg citing anonymous sources, has raised concerns about the bank's association with Kahn and its potential implications for the cryptocurrency industry.

Investments in Bitcoin Mining Industry

B. Riley, known for substantial investments, particularly in Bitcoin mining, inked a deal in September 2023 with Bitcoin miner Iris Energy. The agreement allowed the bank to acquire up to $100 million in equity. Additionally, during Core Scientific's Chapter 11 bankruptcy proceedings, B. Riley extended a $70 million loan to the Bitcoin miner.

As the investigation unfolds, uncertainties persist around the scope and consequences for B. Riley. The bank's statement remains steadfast, emphasizing cooperation and dismissing allegations as baseless. The crypto industry watches closely as regulatory scrutiny extends to prominent players, shaping the evolving landscape.