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The SEC accuses individuals affiliated with a former mining company with iced tea

The U.S. Securities and Exchange Commission has filed a lawsuit against three people accused of insider trading with Long Blockchain Company in connection with the name change from Long Island Iced Tea Company.

In a Friday statement, the SEC said that Eric Watson, Oliver Barret-Lindsay and Gannon Giguiere were facing charges in the U.S. District Court for the Southern District of New York for their role in industries related to the conversion of a liquor store into a blockchain. company, which caused the company’s share price to rise significantly. Giguiere bought 35,000 shares in Long Blockchain after being allegedly tipped off about the change by Barret-Lindsay, who was first warned by Watson.

The decision to switch company from Long Island Iced Tea to Long Blockchain took place in early 201

8. After the company was renamed to focus on blockchain development, the stock price rose 289% – more than 380% intraday, according to the SEC. Giguiere subsequently sold its shares for more than $ 160,000.

The ruling group said Barret-Lindsay and Giguiere had already admitted criminal charges in connection with a stock manipulation scheme, but it would seek permanent injunctions and civil justice for the three people in the current case. In addition, it seeks to prevent Watson from being an officer or director of any public company.

Related: Formerly Iced Tea-Turned-Blockchain Company sells subsidiary for beverages

Long Island Iced Tea was founded in New York as a non-alcoholic beverage company in 2011 and switched its operations to blockchain and later focused on cryptomining. The SEC official removed the company’s shares in February after claiming the company had not submitted any financial reports.