Overstock.com drops 10% after revealing SEC investigation

Ken James | Bloomberg | Getty Images

A United Parcel Service Inc. (UPS) worker loads orders onto a truck in the shipping area at the Overstock.com Inc. distribution center in Salt Lake City, Utah.

Shares of Overstock.com dropped more than 10 percent in pre-market trading Thursday after the e-commerce retailer that’s developed cryprocurrency operations in the last year disclosed that the Securities and Exchange Commission is investigating the firm over digital tokens.

“In February 2018, the Division of Enforcement of the SEC informed the Company that it is conducting an investigation in the matter Re: Overstock.com, Inc. (NY-9777) and requested that the Company voluntarily provide certain documents related to the Offering and the Tokens in connection with its investigation,” according to an 8-K filing with the commission.

Overstock.com’s subsidiary tZero is raising $250 million through a token sale and is launching a digital token exchange. The company says it has a license for an alternative trading system through another acquisition.