Longfin Is Accused Of Fraudulent Public Offering Of Stock By The SEC
The startup Longfin Corp. got into a big scandal with the US Securities and Exchange Commission. The firm is accused of illegal insider trading, while Longfin's CEO is charged with conducting a fraudulent public offering of stocks. Read more: https://thecoinshark.net/bitwise-asset-management-etf-verdict-delayed-by-sec-again/ Longfin is a tech company which went public at the end of 2017. Having used Bitcoin bullish market, they made a turn to the crypto space and its stocks price raised by 2600%. However, most of the accusations had nothing to do with crypto. According to the SEC, the company sold $33 million of stock in unregistered transactions. Moreover, it tried to secure a listing on Nasdaq fraudulently back in 2017, as a result, inflated its revenue by $66 million. The indictment said:
"... Longfin reported as revenue millions of dollars of commodities ‘transactions’ which were actually sham, round-trip events between Longfin and Meenavalli[CEO of Longfin]-controlled entities using phony bills of lading and other fraudulent documents.”
After such accusations, the federal court froze the assets of the company in April 2018, and in seven months it shut down. Though, the CEO pleaded not guilty. In the recent SEC's statement, it accuses the CEO of Longfin, Venkata Meenavalli, of conducting a fraudulent public offering of stock. The accusation says:
“Longfin and Meenavalli engaged in an accounting fraud, recording more than $66 million in sham revenue.”
The accusation also concerns the executives of the company. But most of them settled everything with the SEC. Stay tuned to get more information. We remind you: https://thecoinshark.net/sec-to-hold-fintech-forum-where-they-will-discuss-the-regulation-of-cryptocurrency/