🚨 At a Glance
In a move that screams either “oops, our Excel had a formula error” or “please don’t call the SEC again,” The Crypto Company (OTC: CRCW) just filed a 10-K/A — that’s an amended annual report — for FY2023. The big reveal? It wasn’t the auditors or the SEC who spotted the mistake. It was the company itself. Which sounds noble until you realize they reclassified $2.2 million in token incentives from revenue to liabilities.
That’s not a rounding error. That’s a we-just-woke-up-to-GAAP error.
🪙 What’s The Crypto Company Again?
| Detail | Info |
|---|---|
| Name | The Crypto Company |
| Ticker | CRCW (OTC) |
| Sector | Blockchain Consulting / Token Promotion |
| Revenue (2023) | Originally: $2.38M → Now: $155K |
| Headquarters | Malibu, California |
| Auditor | Saturna Group Chartered Professional Accountants |
Yes, Malibu. Because where else would you run a blockchain company that doesn’t mine or trade crypto but gives token incentive programs instead?
📉 What Changed in the 10-K/A?
Here’s the punchline: they originally reported $2.38 million in revenue, but after this amendment, it’s now $155,610. That’s
a 93.5% drop. Not even Luna crashed that hard.
The reason? They mistakenly recognized unearned revenue — specifically, token-based compensation tied to customers who hadn’t completed their “lock-up and work commitment” period. The accounting team finally read the rules and realized:
“Whoops, it’s a liability until they actually earn it.”
So, back into the liabilities section it went — $2.2 million of it.
🕵️♂️ The Self-Snitch Clause
One might assume this would’ve triggered SEC alarms. But nah. This restatement came because the company’s own new CFO flagged it. That’s Fawwad Qureshi, by the way — who joined late 2023 and started digging through the files like an auditor on Red Bull.
They even noted this was not due to auditor pressure. Respect for the transparency. Shade
