MGT Capital Investments, Inc. takes our responsibility to shareholders very seriously. The rules and regulations of the Securities and Exchange Commission prohibit MGT from disclosing the exact details of the subpoena, however this judicial device is a common method for fact finding by the Agency. Unfortunately, we live in a society where the mere mention of the words SEC subpoena lead to conclusion that we must have done something wrong. Guilty until proven innocent as they say.
Individuals and organizations are typically contacted by the SEC for two reasons: 1) You are the subject of its investigation; or 2) The SEC believes you may have valuable information related to its investigation of another entity or person. To be clear, the subpoena we received asks for documents that in the opinion of counsel (and frankly, common sense) lead to the conclusion the Company and its officers are not the focus.
The SEC does not officially name a target, but the subpoena does state explicitly that the receipt of a subpoena does not mean the recipient or anyone else has “broken the law...or have a negative opinion of any person, entity or security.” We know it is shoot first in the stock market, but the SEC usually gets it right and we need to abide by their rules. We are fully complying with the document production and will update stockholders as allowed.