The US Court ordered the cryptocurrency company Longfin to pay $6,755,848 in fines to the US SEC for issuing fraudulent public offerings. Yesterday SEC announced that a New York Federal court ruled against the fintech company for falsifying revenue from sham commodities transactions.
According to the court and SEC Longfin and its CEO, Venkata S. Meenavalli falsely obtained qualification for a Regulation A+ offering. The company claimed that it operated within the USA, but in reality, the company operated from outside the country.
Earlier, SEC filed its complaint in a federal court claiming that Longfin distributed over 400,000 shares for free to insiders. SEC also alleged that the company also misrepresented the numbers of shares sold in the offering to meet NASDAQ’s listing requirements.
The SEC also claimed that more than 90% of the total revenue of the company in 2017 included fictitious revenue from fake commodities transactions. United States Attorney’s Office is currently investigating the CEO Meenavalli for the District of New Jersey.
Earlier SEC alleged that Longfin, Meenavalli, and three affiliated individuals illegally distributed and sold more than $33 million of Longfin stock in unregistered transactions.