Canada’s BCSC or Securities Commission of British Columbia has charged BLOK with misrepresentation of share sales. BLOK is based in Vancouver, BC, and is a blockchain technology company. According to the accusation, the company traded on the Securities Exchange and the information provided was false.
BLOK Technologies raised ca. $5.4 million in funds through a private source in 2018. The company allegedly did not say that it had spent most of the funds, $4.4 million on consultation fees. Due to this fact, the company had less than 18% in its coffers, around $950,000. According to regulators, the company’s CEO, its VP, and CFO were all complicit in misrepresenting information and thus violating laws.
CEO Robert Dawson left BLOK in 2019 to take up a new position at IOVIA. The other two senior execs no longer work for BLOK and the investigation is still underway. The allegations made by BCSC are still to be proven. BLOK is a company that invests in emerging sectors like blockchain and related technologies.
In 2018, BLOK put out a press release stating that it would use the funds raised to advance its investments in Blockchain and evaluate new projects. This was a point of contention with the BCSC as it is a gross misrepresentation of fund use. With the top brass out of the company, it is difficult to find out what happened. Three intervening years have made it difficult to pin down fund usage – the BSCS is an independent agency that regulates capital markets.
Per reports, the BCSC commission requests concerned parties to appear at their office on October 13th of this year if they want to be heard. After the 13th, a hearing will be scheduled to understand and uncover what happened.