The largest shareholder in Overstock-funded blockchain wealth management startup Bankorus has claimed that the firm has no money left. In a statement issued on Oct. 6, Sonic Zhang said that previous funding deals for Bankorus had fallen through and that all its employees have resigned. Zhang: Bankorus “has run out of cash” As a contributor of more than $1 million to the company, Zhang said that he learned of the problems from its co-founder, Gregory Van den Bergh, in July. “Bankorus has run out of cash, because the second round investors pulled their funds,” Zhang wrote. Overstock STO fails to …

A new complaint filed in Utah accuses Overstock.com, former CEO Patrick Byrne and former CFO Greg Iverson of securities fraud. The complaint Filed on Friday, Sept. 27, the complaint requests a trial by jury, alleging that Byrne designed Overstock.com’s digital asset-based dividend as a means of punishing short sellers, which other outlets have alleged previously. On the subject, and in language more dramatic than many legal filings, the complaint reads: “While defendant Byrne had previously, at different times, launched into public tirades over short selling and naked short selling, the tZERO Dividend was his secret plot to finally obtain hegemony …

On Sept. 19, former Overstock.com CEO Patrick Byrne sold his entire stake in the firm, which accounted for 13% of the company and was worth over $90 million. While the move surprised many, those closely following Patrick’s eccentric personality saw it coming from a mile away. Overstock was launched in May 1999. In the early days of the internet, it worked as an online marketplace that sold surplus goods from failed dot-com companies. It had a competitive advantage by selling at rates lower than wholesale prices. Its business model still hasn’t changed, selling closeout home decor, furniture, bedding and more. …

Overstock’s venture capital arm Medici Ventures has made a $2 million investment into Salt Lake City-based Evernym, a startup that develops blockchain-based self-sovereign identity networks. Per a Sept. 26 press release, Medici invested $2 million into Evernym through participation in the company’s Simple Agreement for Future Equity (SAFE), closed on September 4, 2019. This allows Medici to convert its share in the SAFE to preferred stock in Evernym’s future priced round of equity financing. Development of digital credentials Evernym is planning to allocate the money for further development of its products such as creation of a decentralized ecosystem of digital …

Online retail giant Overstock filed an S-3 form for the registration of its blockchain-based digital preferred stock with the United States Securities and Exchange Commission (SEC). The news builds on previous reports that the firm was looking to liberalize its planned digital dividend shares trading. Investment news outlet MarketWatch reported on Sept. 24 that Jonathan Johnson, Overstock’s newly appointed CEO, announced the filing in a statement earlier today. He said: “This filing represents an initial step in the company's registration of the OSTKO dividend, and the company is engaged in active discussions with regulatory authorities to obtain approval of the …

American e-commerce giant Overstock.com has appointed Jonathan Johnson as the company’s new chief executive officer, according to an announcement on Sept. 23. Johnson has served as an interim CEO of Overstock since the end of August when Patrick Byrne stepped down. Presently, Johnson also acts as the company’s member of the board of directors, president at Overstock’s venture capital arm Medici Ventures, and chairman of the board at its blockchain-focused subsidiary tZERO Group. Johnson stated: “Overstock has two unique businesses. [...] I have run both, and I know how to unlock the value in each. I’m confident we can rapidly …

Former Overstock CEO Patrick Byrne has sold his 13% stake in the firm for $90 million to move to gold and crypto trading. Byrne, who resigned from Overstock on Aug. 22, cashed out nearly 4.8 million Overstock (OSTK) shares, which accounts for more than 13% of the company, American financial publication MarketWatch reported on Sept. 19. According to a filing with the United States Securities and Exchange Commission (SEC), the former CEO was selling his shares at lower and lower prices over the past three days, ranging from $21.84 on Sept. 16 to $16.32 on Sept. 18. “Counter-cyclical to the …

American e-commerce giant Overstock hopes to liberalize its planned digital dividend shares trading. According to a Sept. 18 news release, Overstock is working with regulatory authorities on making its digital asset-based dividend freely tradable by non-affiliates following distribution. As such, the company will not have to put its dividend shares on the six-month holding period as required under Rule 144 enforced by the United States Securities and Exchange Commission. Commenting on the development, interim CEO of Overstock Jonathan Johnson said: “We have received a great deal of interest surrounding our Series A-1 dividend from shareholders, broker-dealers, regulators, and the general …

The CEO of Overstock’s blockchain subsidiary tZERO, Saum Noursalehi, has issued an update on tZERO’s progress and addressed the departure of Overstock’s CEO Patrick Byrne. In a letter to investors published on Sept. 6, Noursalehi addressed Byrne’s resignation as the CEO of American e-commerce giant Overstock.com. Noursalehi assured that Byrne’s departure will not have an impact on tZERO’s daily operations and implementation of the firm’s strategic roadmap. Byrne stepped down as CEO of Overstock in late August. In his letter of resignation, Byrne reaffirmed his faith that “the blockchain revolution will reshape key social institutions.” Progress and priorities Noursalehi further …

Patrick Byrne’s exit from Overstock has nothing to do with the allegedly ongoing regulatory investigation, the firm’s interim CEO said. No requests since December 2018 Overstock’s interim CEO Jonathan Johnson claimed that the alleged probe by the United States Securities and Exchange Commission (SEC) appears to be “almost dormant” to date as the commission has not asked on the matter since December 2018, Fox Business reported on Sept. 3. Johnson clarified that Overstock has not had requests for information from the SEC’s enforcement division for almost a year, adding that the company spent a “king’s ransom to process their requests …

Singaporean private equity firm Makara Capital said it will not invest in Overstock’s blockchain subsidiary tZERO. In an Overstock investor call on Aug. 26, Overstock’s interim CEO Jonathan Johnson said that Makara recently informed the firm that they “will be not investing in tZERO right now.” Medici Ventures will continue to support tZERO Johnson emphasized that Makara remains excited about tZERO’s product and will potentially reconsider its investment decision as tZERO progresses. In the meantime, Overstock’s blockchain-focused venture arm Medici Ventures will continue to support the project, Johnson stated. The news come just four days after former Overstock CEO Patrick …

Noted crypto advocate Patrick Byrne has resigned as CEO of Overstock. Per a letter of resignation and company statement posted on Twitter Aug. 22, Patrick Byrne has stepped down as CEO of Overstock. Having led crypto-friendly e-commerce at the company, including the launch of tZERO, Overstock’s crypto token platform, and Overstock’s acceptance of Bitcoin payment, Byrne’s resignation follows the announcement of disappointing Q1 earnings for 2019. More directly, Byrne cited the recent announcement of his controversial relationship with Maria Butina as the impetus for cutting ties with Overstock. In his letter of resignation, Byrne reaffirmed his faith that “the blockchain …