The U.S. Securities and Exchange Commission (SEC) has now focused its attention on alleged violations of securities laws by prominent bitcoin mining firm Marathon Digital.
SEC Subpoenas Marathon
In a recent press release, bitcoin mining company Marathon Digital Holdings revealed that it has received a subpoena from the U.S. Securities and Exchange Commission as part of its investigation into a data center in Montana involving potential violations of securities laws.
Marathon Digital, the second-largest publicly traded bitcoin miner in the United States, was subpoenaed by the SEC to produce documents and information related to the company’s operations.Marathon said it intends to work with SEC investigation.
Marathon Regulatory Issues
The company files its quarterly earnings Report On Wednesday, it also shared news of the subpoena.
“The company received an additional subpoena from the SEC on April 10, 2023, regarding transactions with related parties, among others. We understand that the SEC may be investigating any violations of federal securities laws. We are cooperating with the SEC. “
This isn’t the first time Marathon has come under scrutiny from regulators. The company and its executives received a subpoena in September 2021, through which the SEC sought to obtain documents related to the company’s Montana facility.
Also, about a few months ago, the country was in the news for internal accounting issues, which caused them to reissue several financial statements.
CEO calls out ‘energy problem’
The SEC’s investigation into Marathon comes at a time when global regulators are stepping up scrutiny of the cryptocurrency industry. Last month, the U.S. Securities and Exchange Commission warned investors of the risks of investing in cryptocurrencies, including the potential for fraud and market manipulation. The agency has also taken action against a number of cryptocurrency companies in recent years, including Ripple Labs, coin me BitConnect and Coinbase.
Many regulators and government agencies have expressed concern about the high carbon footprint and energy demands of mining operations.
However, Marathon’s chief executive, Fred Theil, recently questioned these views, claiming that industrial emissions are of much greater concern to their environmental impact.
“Why care about the environmental impact of the energy used to mine bitcoin when heavy industry is responsible for about 22% of global CO2 emissions… After targeting bitcoin miners, will governments propose energy taxes on data centers that generate artificial intelligence to Protect the environment and jobs?”
Disclaimer: This article is for informational purposes only. It does not provide or be intended to be used as legal, tax, investment, financial or other advice.