SEC Takes Action Against BTC Mining! The Securities and Exchange Commission says Bitcoin mining is trading in unregistered securities.
The American financial regulator once again attacks the king of cryptocurrencies.
The US Securities and Exchange Commission (SEC) is constantly trying to exercise as much oversight as possible over the entire digital currency sector. This time, commissioners under the supervision of Gary Gensler sent a notice to Marathon Digital. It is a giant in the Bitcoin mining industry. Where did SEC employees find trading in unregistered securities this time?
Marathon Digital again under the scrutiny of the SEC
One of the American leaders in the Bitcoin mining market - Marathon Digital Holdings - in the quarterly report published on May 10, informed the public that exactly one month earlier it had unexpectedly received a subpoena for explanations from the US Securities and Exchange Commission (SEC).
The financial watchdog took a closer look at the case related to the creation of a facility in Hardin, Montana, USA. As reported by the authorities of the above-mentioned company, the SEC is investigating transactions with related entities that took place at the time of the construction of the data center. Marathon, however, does not seem overly concerned or frightened by the subpoena received, and expresses a strong willingness to cooperate with the financial regulator.
“We are fully aware that the SEC has every right to investigate whether there may have been any violations or irregularities and, consequently, a violation of federal securities law. We express our full willingness to cooperate with the SEC – it was written in the published report.
At this point, it is worth adding that this is not the first time that Marathon has come under fire from the SEC regarding the recently opened facility. This is because at the end of 2021, the US commission responsible for overseeing financial entities called on the company to provide a full list of requested documents and communications regarding the launch of the facility.
Marathon will start Bitcoin mining in UAE
It is significant that this week Marathon Digital also publicly announced a partnership with the well-known company Zero Two. This entity specializes in creating a broadly understood infrastructure of digital resources. The aim of their cooperation is to lead to the creation of a completely innovative Bitcoin mining center, which will be built in Abu Dhabi.
The facility planned by both companies is to include two mining pools with a total capacity of as much as 250 megawatts. Marathon is fully aware that BTC mining activities in the capital of the United Arab Emirates in the weather conditions prevailing in this region are almost impossible. However, the company assures that "its dedicated solutions" are to ensure extremely effective cooling of the mentioned mining platforms.
Finally, one cannot fail to add that the announcement comes two months after the information that the US government is determined to subject all entities involved in mining the oldest digital currency to a record high tax on electricity costs.