Overstock Shares Tumble on Disclosure of SEC Token Inquiry

• March 01 2018
• Lily Katz

Overstock.com Inc. received a request from U.S. securities regulators asking for documents related to the company’s plan to issue digital tokens, according to a regulatory filing Thursday.

Overstock.com Inc. received a request from U.S. securities regulators asking for documents related to the company’s plan to issue digital tokens, according to a regulatory filing Thursday.

Overstock said the Securities and Exchange Commission asked it in February to voluntarily provide information related to its token sale. The company is conducting an offering of tZERO Tokens, digital coins that owners can use to pay fees on Overstock’s trading platform.

The Salt Lake City-based online retailer’s shares tumbled more than 10 percent in premarket trading. The stock surged 23 percent on Sept. 27 after it first announced plans for a token exchange.

The disclosure comes as the SEC expanded its broad crackdown on initial coin offerings by issuing a number of subpoenas to firms and individuals behind specific offerings that it believes might be breaking the law, a person with direct knowledge of the matter told Bloomberg.