Overstock Loses Another Big Investor in Crypto Token Exchange tZERO

After a long courtship, Overstock's security token platform, tZERO, has lost another potential investor.

"Makara will not be investing in tZERO right now," Interim CEO Jonathan Johnson said during the Overstock investor call on Monday.

Johnson did mention that the Singapore-based fund will keep an eye on tZERO and possibly reconsider its decision in the future.

Overstock founder Patrick Byrne abruptly resigned from the company on Aug. 22 following an earlier admission of a romantic relationship with Maria Butina, the Russian spy currently serving 18 months in federal prison.

Makara entered the fray in March as the co-lead of a $100 million investment in tZERO common stock, which at the time was expected to close in April.

On the bright side, tZERO's other security token marketplace - the BSTX exchange for publicly-traded stocks built in partnership with the Boston Options Exchange - is on-track for launch.

With the Byrne bombshell dropping late last week, Overstock's current leadership did not avoid the elephant in the room.

As for the ongoing SEC investigation into tZERO's token sale that derailed Byrne's plans to sell Overstock's retail business, no developments have been announced.

Also announced on Monday's investor call, Medici Ventures, the blockchain-focused venture arm of Overstock, plans to invest $2 million in a digital identity company.

In an interview late last week, Johnson assured CoinDesk he remains "a full-on believer" in crypto and that he'll continue to champion Overstock's blockchain-related efforts.