Associates of cryptocurrency NASDAQ firm Longfin "LFIN" hit with $27 million trading profits freeze by SEC court order (AP Photo/Rick Bowmer, File)
The Securities and Exchange Commission announced today it has obtained a court order freezing $27 million in trading profits from three affiliates of the founder of NASDAQ cryptocurrency company Longfin “LFIN” for illegally selling unregistered shares.
The SEC’s Enforcement Division Cyber Unit Chief Robert Cohen said the freeze was sought to prevent the profits from being transferred out of the United States.
In its complaint, the SEC charged the three sold large blocks of their unregistered restricted shares in Longfin in the wake of Longfin’s purchase of a “purported” cryptocurrency trading company, Ziddu.com.
Longfin began listing on NASDAQ December 13. The Zuddu.com purchase was announced two days later.
Venkata Meenavalli, the founder, controlling shareholder and CEO of Longfin, also owned at least 92 percent of the company the cryptocurrency trading firm was purchased from, the SEC’s complaint said.
AlthoughZiddu.com had no ascertainable value, Longfin'snshare price quadrupled the day the acquisition was announced to $22.01, last December 15 the complaint claimed.
The next trading day, December 18, the price jumped to $142.82.
">Associates of cryptocurrency NASDAQ firm Longfin "LFIN" hit with $27 million trading profits freeze by SEC court order (AP Photo/Rick Bowmer, File)
The Securities and Exchange Commission announced today it has obtained a court order freezing $27 million in trading profits from three affiliates of the founder of NASDAQ cryptocurrency company Longfin “LFIN” for illegally selling unregistered shares.
The SEC’s Enforcement Division Cyber Unit Chief Robert Cohen said the freeze was sought to prevent the profits from being transferred out of the United States.
In its complaint, the SEC charged the three sold large blocks of their unregistered restricted shares in Longfin in the wake of Longfin’s purchase of a “purported” cryptocurrency trading company, Ziddu.com.
Longfin began listing on NASDAQ December 13. The Zuddu.com purchase was announced two days later.
Venkata Meenavalli, the founder, controlling shareholder and CEO of Longfin, also owned at least 92 percent of the company the cryptocurrency trading firm was purchased from, the SEC’s complaint said.
AlthoughZiddu.com had no ascertainable value, Longfin'snshare price quadrupled the day the acquisition was announced to $22.01, last December 15 the complaint claimed.
The next trading day, December 18, the price jumped to $142.82.
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