Patrick Byrne’s exit from Overstock has nothing to do with the allegedly ongoing regulatory investigation, the firm’s interim CEO said.
No requests since December 2018
Overstock’s interim CEO Jonathan Johnson claimed that the alleged probe by the United States Securities and Exchange Commission (SEC) appears to be “almost dormant” to date as the authority has not asked on the matter since December 2018, Fox Business reported on Sept. 3.
Johnson clarified that Overstock has not had requests for information from the SEC’s enforcement division for almost a year, adding that the company spent a “king’s ransom to process their requests for information to put this to bed.”
SEC gives no clarity again
According to the report, Johnson met with SEC officials in late June to put an end to the investigation or at least get a better picture of its status. However, the company is reportedly still awaiting feedback from the federal securities regulator.
While a SEC representative declined to comment on the news to Fox Business, Johnson believes the state of the nearly two-year investigation is not active, according to recent conversations with the regulator, the report notes.
The SEC investigation was first revealed by Overstock’s crypto subsidiary tZERO in mid-December 2017. Following the probe reports, Overstock’s shares saw a significant decline, as reported in March 2018.
Meanwhile, Byrne’s withdrawal from Overstock on Aug. 22 has allegedly caused the company’s key investor Makara Capital to back out from the deal on Aug. 26 after revealing its ambiguous investment plans back in August 2018.
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