Asset Freeze Continues for Public Company That Pivoted to Crypto

The U.S. Securities and Exchange Commission (SEC) is likely to win its case against three individuals associated with Longfin Corp, a company whose stock skyrocketed after a blockchain pivot, said a federal judge. U.S. District Judge Denise Cote said on Tuesday that the regulatory agency has a good chance of proving that Andy Altahawi, Suresh Tammineedi and Dorababu Penumarthi illegally benefited from the pivot. Longfin's price jumped by more than 2,000% last year after it announced the acquisition of a blockchain startup. In the court order, she wrote: "The SEC has shown that it is likely to prove at trial that these defendants participated in an unregistered, illegal public offering of the stock of Longfin Corp." As part of this decision, Cote granted a preliminary injunction to the SEC and also maintained a freeze on $27 million worth of assets owned by Altahawi, Tammineedi and Penumarthi that the Commission sought…

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