Longfin's CEO agrees to settle the $ 400,000 SEC fraud lawsuit



The CEO of cryptocurrency company Longfin Corp. has agreed to regulate fees for fraudulent public offerings and counterfeiting with the United States Securities and Exchange Commission.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Per SEC Explanation Venkata Meenavalii agreed on January 3 to pay $ 400,000 for disgorgement and penalties, although the settlement has not yet been approved by the court. "data-reactid =" 19 "> According to a statement by the SEC on January 3, Venkata Meenavalii has agreed to pay $ 400,000 for disorganization and penalties, although the settlement is still awaiting court approval.

If approved, Meenavalii will pay out the $ 159,000 he received as CEO of Longfin, and pay $ 9,000 in prejudice interest and $ 232,000 in civil penalties. According to the supervisory authority, the settlement fee can be returned to injured investors.

In the meantime, the U.S. Attorney General continues to pursue a separate criminal case against Meenavalii, according to the announcement.

Longfin and Meenavalii have been accused by the SEC of incorrectly stating in their SEC filings that the company was managed and operated in the United States when its operations, assets, and management remained offshore. The company also had fictitious revenues of more than $ 66 million from bogus commodity transactions, the regulator said.

<p class = "canvas-atom canvas-text MB (1.0em) MB (0) – SM MB (0.8em) – SM" type = "text" content = "In September the SEC receive a default judgment against Longfin Corp. by a federal court in New York that ordered the company to pay approximately $ 6.8 million in fines and expropriations. The regulator continues its investigation, the announcement said. "Data-reactid =" 23 "> In September, the SEC received a default judgment against Longfin Corp. from a federal court in New York, which ordered the company to pay approximately $ 6.8. The regulator is continuing to investigate in the announcement.

Longfin has been one of a number of companies in the past year and a half that have sought to spark investor interest by tying their business to blockchain applications.