SEC accuses blockchain concept stock Longfin listing fraudulently on Nasdaq

The US Securities and Exchange Commission (SEC) filed new allegations against financial technology company Longfin Corp. and its CEO, Venkata Meenavalli. According to a press release issued on Wednesday, the SEC accused Longfin of rising its share price by about 2,000% in 2017 after it announced its move to blockchain. The company forged its revenue and fraudulently included the company on the NASDAQ exchange. The complaint alleges that Longfin and Meenavalli falsely claimed that the company manages and operates the company's business primarily in the United States in documents submitted to the SEC, thereby qualifying for the issuance of A+ rules, but in fact its assets and management are still offshore. In addition, the company and its CEO distributed 400,000 shares to insiders and affiliates, but did not actually sell them, just to meet Nasdaq's listing criteria.