The U.S. Securities and Exchange Commission obtained an emergency freeze of $27 million in trading profits involving the CEO of purported blockchain company Longfin and three other people, the agency said in a statement Friday.
The New York-based firm’s stock price skyrocketed in December after it announced its acquisition of Ziddu.com, a marketplace for smart contracts. The price stock price then began to plummet following news that FTSE Russell removed the company from the Russell 2000 and 3000 Indices after only two weeks of inclusion and questions about their use of the blockchain.
Bloomberg
Longfin CEO Venkat Meenavalli was a guest on CNBC's Fast Money Wednesday afternoon, notably blaming short sellers for "destroying" the stock.
https://twitter.com/CitronResearch/status/978266445237768192?ref_src=twsrc%5Etfw&ref_url=https%3A%2F%2Fsludgefeed.com%2Flongfin-stock-plummets-following-russell-removal-blockchain-acquisition%2F&tfw_creator=SamSloops&tfw_site=SludgeFeed
- CitronResearch
The stock was up another 50 percent Friday morning before being halted at 10:01 a.m. ET on a T-12 code. Longfin's stock last traded at $28.19 per share and could remain untradeable for up to 10 business days. According to Robert Cohen, Chief of the SEC Enforcement Division's Cyber Unit, the quick response was designed to prevent the perpetrators from transferring their ill-gotten gains out of the country:
"We acted quickly to prevent more than $27 million in alleged illicit trading profits from being transferred out of the country. Preventing defendants from transferring this money offshore will ensure that these funds remain available as the case continues."
https://twitter.com/APompliano/status/982285995663015936
- APompliano
More: Longfin Gets The T-12 Halt, SEC Obtains Emergency Freeze Of $27M In Stock Sales
Detailed: Longfin's Wild Crypto Ride Goes Beyond Any Short Seller Attack
Posted from my blog with SteemPress : https://sludgefeed.com/sec-files-lawsuit-against-purported-blockchain-company-longfin/