- Brendan McDermid/Reuters
- Mike Poutre, the former chief executive of The Crypto Company, stepped down from his position earlier this month, according to a company filing.
- His stake in the company made him a multi-billionaire in December, according to The Wall Street Journal.
The chief executive of a crypto tech company born out of a reverse takeover of a fitness clothing firm is out, according to a company filing.
Michael Poutre, the former chief executive of The Crypto Company, resigned from the firm on May 14. He was replaced by former president James Gilbert.
The Crypto Company made headlines during the crypto boom at the end of 2017, which saw bitcoin soar close to $20,000 a coin and The Crypto Company’s stock appreciate by as much as 1,600%. On paper, Poutre – who owned a fifth of the firm’s shares – became a multi-billionaire at the peak, according to a report by The Wall Street Journal. He was worth $3.9 billion, The Journal reported.
Bitcoin is now trading at around $7,600 a coin.
Shares in the Crypto Company, which trade in OTC markets, were up 111% on Wednesday afternoon. Shares exchanged hands at around $42.50, down from an all-time high above $640 a share.
The Crypto Company, which was developing technologies relating to crypto market structure, was born out of a reverse takeover of Croe Inc. Croe, a fitness clothing company, was developing a new type of sports bra.
“Our strategy is to invest in the capital markets infrastructure for crypto,” Poutre told Business Insider in an interview in December.
The company then announced it was planning on splitting its stock in ten, as Business Insider first reported. Regulators denied that request, according to a filing.
“On March 1, 2018, we received a letter from FINRA rejecting the Stock Split on the basis of deficiency and in the interest of the protection of investors, the public interest and to maintain fair and orderly markets,” the filing said.
A former stock broker, Poutre was suspended by FINRA for two years in 2010.