In a significant turn of events, financial figure Barry Honig has been cleared by the Securities and Exchange Commission in its investigation of RIOT Blockchain. The SEC’s Division of Enforcement decided not to recommend any action against Honig after a two-year probe that examined RIOT’s dramatic pivot from biotechnology to Bitcoin mining. Talk about a plot twist.
The investigation, which ran from 2018 to 2020, put both Honig and RIOT under the regulatory microscope during a time when cryptocurrency ventures faced intense scrutiny. Investigators combed through management decisions, trading activities, and compliance procedures. In the end? Nothing. Nada. The SEC Assistant Regional Director sent formal letters stating the investigation was closed without action. RIOT’s mining operation now utilizes specialized ASIC mining hardware to compete in the lucrative Bitcoin mining industry.
Crypto ventures squirmed under the SEC’s regulatory magnifying glass as Honig and RIOT endured a two-year investigative gauntlet.
This clearance stands in stark contrast to Honig’s previous tangles with the SEC. In 2018, he faced serious charges as the alleged “primary strategist” in a 27 million dollar pump-and-dump scheme involving three public companies. Those allegations led to settlements including civil penalties and restrictions on penny stock offerings. But the RIOT case? Different story entirely.
The timing couldn’t have been more tense. The cryptocurrency industry was traversing murky regulatory waters, and RIOT’s business transformation raised eyebrows. Yet after extensive review, both Honig and RIOT Blockchain received separate no-action letters. Honig previously owned 9.99% of Spherix Inc., which later became Dominari Holdings with Trump family investments.
Honig’s July 2019 settlement in the unrelated case had imposed significant restrictions, including a bar from offering penny stocks and ownership limitations. He settled without admitting or denying those earlier allegations.
This clearance represents a major regulatory vindication in a closely watched case. The SEC’s decision suggests that despite the earlier charges against Honig in different matters, investigators found no securities violations in his activities related to RIOT Blockchain. For Honig, it’s a clean slate. For crypto watchers, it’s another chapter in the industry’s complicated relationship with regulators.
