Crypto Mining Rig Maker Canaan Added to SEC List of Scrutinized China Companies
At challenge, in accordance with the SEC, is Canaan’s use of an auditor for its 2021 annual report that the U.S. Public Firm Accounting Oversight Board (PCAOB) couldn’t absolutely examine or examine, mentioned the corporate in a submitting. Mentioned auditor was KPMG Huazhen LLP.
Finalized in 2021, the Holding Overseas Firms Accountable Act (HFCAA) was geared toward eradicating from U.S. public markets these firms managed by overseas governments.
Canaan has till Could 25 to file documentation with the SEC to show that it isn’t “owned or managed” by a overseas authorities, in accordance with the HFCAA. If Canaan had been to stay as an “recognized” issuer for 3 consecutive years, it dangers being delisted from U.S. markets, together with over-the-counter buying and selling.
“The Firm will proceed to adjust to relevant legal guidelines and rules in each China and the U.S., and attempt to take care of its itemizing standing on Nasdaq,” Canaan’s Thursday submitting mentioned.
The SEC and Canaan couldn’t be reached for remark on the time of publication.
Canaan is certainly one of over 70 firms so-identified yesterday, with different names together with electrical automobile makers XPeng and Nio, e-commerce giants JD.com and Journey.com, and the maker of certainly one of China’s covid vaccines, Sinovac Biotech.
Alongside a greater than 3% plunge within the broader inventory market and bitcoin (BTC) on Thursday, China-linked crypto mining-related shares are additionally headed sharply decrease, with Canaan (CAN), Ebang (EBON), Bit Digital (BTBT), and Bit Mining (BTCM) all off 6%-10%.
Bitdeer and BitFuFu are two China-born mining firms that wish to go public through SPAC offers with Blue Safari Company (BSGA) and Arisz Acquisition Corp. (ARIZ), respectively.
In 2015, KPMG Huazhen and one other three Chinese language branches of worldwide accounting corporations settled a case introduced in opposition to them by the SEC for failing to provide paperwork associated to fraud investigations. The corporations paid $500,00 every and admitted that they did not produced the required paperwork.