CEO Pre-halt response
(CNBC) SEC takes aim at controversial crypto company Longfin, freezes $27 million in proceeds from insider stock sales.
The U.S. Securities and Exchange Commission obtained an emergency freeze of $27 million in trading profits involving the CEO of cryptocurrency company Longfin and three other people.
The SEC alleges that the Longfin CEO used affiliates to sell restricted shares.
“Essentially they played a shell game here and sold shares that they weren’t allowed to sell,” according to Peter Henning, Wayne State University law professor and former federal prosecutor.
(SeekingAlpha) LongFin Corp. Halted And Sued By SEC: What Now? (Podcast)
Shares of LongFin Corp. were halted for more information by NASDAQ on Friday.
- Simultaneously, the SEC sued the company.
- This isn’t traditionally what you look for from an investment.
- This podcast talks about what it means if you’re long, short or just watching from the outside.
- It also covers why short sellers are vital to the market.
LongFin Corp.’s (NASDAQ:LFIN) stock was halted with the dreaded T12 code today and simultaneously sued by the SEC, almost positively ensuring that if you’re long, you’re going to face a total loss. Prior to this, the stock was up 40% on Friday morning following the CEO’s appearance on Thursday evening on CNBC’s Fast Money.