Investment bank B. Riley, known for its significant involvement in the cryptocurrency mining sector, is currently bitcoin under scrutiny by U.S. authorities. This investigation, as reported by Bloomberg and not officially acknowledged by the Securities and Exchange Commission (SEC), revolves around B. Riley’s dealings with Brian Kahn, implicated in a U.S. Department of Justice criminal case. Amidst these developments, B. Riley has been actively investing in the bitcoin mining space, including a $100 million equity deal with Iris Energy and a $70 million loan to Core Scientific to aid its bankruptcy recovery, according to Coindesk.
Kahn, identified as the CEO of Franchise Group Inc., is a key figure in this controversy. His connection to a $294 million securities fraud case, as admitted by Prophecy Asset Management co-founder John Hughes, places him at the center of these allegations. B. Riley’s statement, however, dismisses these claims as unfounded, attributing them to short sellers’ attempts to harm the firm.
The situation is further complicated by Nomura’s involvement. This major Japanese financial group, backing various crypto entities, played a crucial role in financing Kahn’s business endeavors. Yet, Nomura is not the primary focus of the ongoing investigation.
The SEC’s silence on the matter and Nomura’s unreachable status for comment add layers of uncertainty to an already intricate scenario.

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