Overstock.com Inc (NASDAQ:OSTK) stock was down Thursday on news on an investigation from the U.S. Securities and Exchange Commission (SEC).
The investigation from the SEC was revealed by the company in a filing with the organization. Overstock.com Inc notes that it was alerted to the investigation last month and that it is working with the SEC to ease concerns about its Initial Coin Offering (ICO).
“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,” Overstock.com Inc says in the filing. “Also, the investigation does not mean that the SEC has a negative opinion of any person, entity, or security.”
Overstock.com Inc has been working to develop its own tokens and open a market for trading virtual currency. However, it appears that it is backing down from some of these efforts. The company notes that RenGen LLC and Argon Group no longer have an interest in developing an alternative trading system.
Overstock.com Inc says that there is still interest from RenGen LLC in another project between the two companies. This would be a joint venture that would have them offering consultancy services.
Overstock.com Inc’s shift toward blockchain isn’t just a passing interest. Company CEO CEO Patrick Byrne told listeners in the company’s conference call for the third quarter that it may sell the online retail business to focus more on blockchain.
OSTK stock was down 5% as of noon Thursday.
As of this writing, William White did not hold a position in any of the aforementioned securities.