Copy link
Increase text size
Decrease text size
Link copied

Longfin and its CEO ordered to pay $6.8M penalty for SEC fraud complaint

Image Credit: Longfin

Tue, 01 Oct 2019, 13:42 pm UTC

Cryptocurrency firm Longfin Corp. has been ordered by the U.S. District Court for the Southern District of New York to pay the U.S. Securities and Exchange Commission (SEC) nearly $6.8 million in penalties related to its public offering and Nasdaq listing.

As per the SEC announcement, Longfin needs to reimburse $3,532,235 for all the proceeds raised during its 2017 Regulation A+ offering plus interest and to pay $3,243,613 for the fines.

In June, the SEC alleged that Longfin and its CEO Venkata S. Meenavalli had falsely claimed in SEC filing that the blockchain-powered firm was operating within the U.S., when in fact, its operations, assets, and management were actually located overseas.

Longfin and Meenavalli, as alleged, then distributed over 400,000 free Longfin shares to insiders and affiliates, and misrepresented the number of qualifying shareholders and shares sold in the offering to meet Nasdaq listing requirements,” the court paper stated.

In addition, the commission revealed that Longfin and Meenavalli fabricated over $66 million worth of revenue from “sham” commodities transactions, an amount that represented over 90% of Longfin’s total reported revenue in 2017.

The SEC said it will put up a “fair fund” to repay “harmed” Longfin investors with the money it will receive from the company.

Longfin’s price skyrocketed to more than 2,000% in 2017 after announcing a blockchain pivot. It voluntarily delisted from Nasdaq in May 2018 and closed down after six months.

Meanwhile, EOS maker Block.One has reportedly agreed to pay $24 million in penalties after raising a total of $4.1 billion in an unregistered coin offering between 2017 and 2018. Block.One made clear that the settlement is only applicable to the sale of the original ERC-20 tokens it sold, which are no longer in circulation.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
  • Bitcoin (BTC) $8,832.79 (-5.67%)
  • Ethereum (ETH) $230.49 (-8.08%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Bitcoin Cash (BCH) $320.65 (-8.62%)
  • Bitcoin SV (BSV) $226.65 (-12.58%)
  • Bitcoin (BTC) $8,832.79 (-5.67%)
Feb 21, 2020 (Friday)
Paxos launches blockchain-based securities settlement solution with Credit Suisse and Instinet
Brazil to launch new payment system in response to cryptocurrencies
Digital currency exchange Coinbase Pro lists Kyber Network token
Norwegian Air to soon start accepting crypto payments
Swedish central bank begins CBDC pilot with Accenture
Italian soccer team Juventus launches ethereum-based digital collectibles with Sorare
Feb 20, 2020 (Thursday)
Telecom companies complete cross-carrier mobile payments using blockchain
National Stock Exchange of Australia to develop DLT-based digital securities trading platform
South Korean ICO project discontinued, to return $7.5M to token holders
Samsung maintains crypto support in soon-to-launch Galaxy S20
BIS appoints Innovation Hub heads to lead Singapore and Switzerland
Coinbase becomes first crypto company to receive Visa principal membership
Dubai Economy and six banks launch KYC Blockchain Consortium
Crypto Technicals: ETH/USD under downside pressure after 'Bearish Engulfing' pattern
Tim Draper buys $1M worth of Aragon Tokens to create digital courts for DAOs
Renewable energy firm Acciona commits to take CBI’s blockchain-based carbon credits trading platform global
Crypto Technicals: BTC/USD trades below 21-EMA, break below 4H 200 MA (9386) to trigger further downside
Crypto exchange Coinfloor to launch a simplified bitcoin buying service
Indonesia’s customs department joins IBM- Maersk blockchain shipping platform “TradeLens”
Feb 19, 2020 (Wednesday)
Crypto custodian BitGo acquires digital securities startup Harbor
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.