US SEC sues LongFin Corp. (OTCMKTS: LFIN) and its CEO for fraud related to blockchain
- The US SEC has sued fintech company Longfin Corp. (OTCMKTS: LFIN) and Venkata Meenavalli, its CEO, for announcing a blockchain pivot that triggered a 2,000% spike in its stock price.
- The Securities and Exchange Commission published charges accusing Longfin of falsifying its revenue figures and misrepresenting facts during its NASDAQ listing.
The SEC’s filing states: “The complaint alleges that Longfin and Meenavalli obtained qualification for a Regulation A+ offering by falsely representing in SEC filings that the company was principally managed and operated in the U.S. when, in fact, the company’s operations, assets and management remained offshore.”
The new charges follow previous allegations that the company distributed 400,000 shares to affiliates and company insiders.