(BeinCrypto) Shares of Marathon Digital Holdings closed down more than 27% on Monday on news that the Securities and Exchange Commission was investigating its deal with Beowulf Energy.
The deal, struck in October last year, involved Marathon’s partnership with Beowulf Energy for the Montana data facility. Beowulf was to receive some Marathon stock for allowing the latter to relocate its bitcoin mining center to near its energy station.
The investigation, which the SEC says involves a potential violation of the security laws, happens as the regulator moves to bring sanity to the market. The SEC is also pursuing other lawsuits in related cases in the cryptocurrency market.
SEC Chair Gary Gensler has hinted in the past at regulatory moves in the crypto industry. Some market participants have called for an involved approach to bring legitimacy to the sector.
MARA: NASDAQ is currently down -5.47% on premarket.
