- Longfin’s Stock Value Drops By 30% As US SEC Announces Investigation
- SEC earlier announced a crackdown any firm that manipulates stock prices using public enthusiasm surrounding Blockchain Tech.
United States: The US SEC had earlier made a report last January to launch a crackdown on any firm that that manipulates their stock prices using public enthusiasm that surrounds the Blockchain Tech. Yesterday, April 3, a report reaching Cryptona.co revealed that the stock value of Longfin – a US-based NASDAQ-listed fintech firm (LFIN) – dropped by about 30% after the US Securities and Exchanges Commission (SEC) announced its investigations into the firms’ business.
The investigation was disclosed by Longfin in a public 10-K filing on 2nd April to the US SEC. the share value of Longfin closed about 30.89% lower and trades at $9.89 per share. So far, the Longfin’s stock value has fallen by 82.43% this year.
In just 2 days last Dec., the market cap of Longfin rose by more than 1,000% after it announced its acquisition of Ziddu.com – a company that specializes in micro-lending and smart contracts using Blockchain Tech. Venkat Meenavalli, the CEO of Longfin, even acknowledged this huge rise in stock value and declares:
“This market cap is not justified. I valued my IPO pricing at $5.”
“We are a profitable company… We have nothing to do with this euphoric mania.”
However, on 5th March, the Enforcement Division of the US SEC sent a notice to Longfin that it would commence an investigation into the firm’s share trading and demanded some documents as regards its IPO and acquisition of Ziddu.com. As disclosed in a public 10-K filing, Longfin stated it will fully cooperate with the investigation of the US SEC:
“We are in the process of responding to this document request and will cooperate with the SEC in connection with its investigation. While the SEC is trying to determine whether there have been any violations of the federal securities laws, the investigation does not mean that the SEC has concluded that anyone has violated the law.”
There is a tendency that the investigation may cause a further drop in the stock value of Longfin, what do you think about this? Tell us in the comment box below.
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