According to the regulatory body, a capitalist was tipped off that the corporation would be rebranded, a move that resulted in an exceedingly immense surge in Long Blockchain’s stock value.
The U.S. Securities and Exchange Commission has filed charges against 3 folks accused of trading with the Long Blockchain Company associated with ever-changing its name from the Island Iced Tea Company.
In an announcement on Friday, the SEC told Eric Watson, King Oliver Barret-Lindsay, and Gannon Giguiere were facing charges within the U.S. District Court for the Southern District of New York for their role in trades connected to rebranding a soft drinks business to a blockchain firm, which caused the company’s stock value to rise considerably. Giguiere bought 35,000 shares of Long Blockchain once having been allegedly tipped off to the modification by Barret-Lindsay, which was 1st alerted by Watson.
The decision to alter the firm from island tea to Long Blockchain happened in early 2018. Once the corporate rebranded to target blockchain development, the stock value surged by 289% — quite 380% intraday per the SEC. Giguiere apparently sold his shares for quite $160,000.
The regulatory body said Barret-Lindsay and Giguiere had already pleaded guilty to criminal charges in affiliation to a stock manipulation scheme, however it’d be seeking permanent injunctions and civil penalties for the 3 people for its current case. In addition, it’s trying to stop Watson from being an official or director of any public company.
Founded in New York as a non-alcoholic drinks company in 2011, Long Island Tea went on to shift its working to blockchain and later targeted crypto mining. The SEC official delisted the company’s shares in February once it alleged the firm hadn’t created any money reports.