The U.S. Securities and Trade Fee (SEC) charged three individuals with insider buying and selling on allegations they purchased shares of Lengthy Island Iced Tea forward of its 2017 announcement it might pivot to a blockchain-based enterprise mannequin.
The SEC charged Eric Watson, Oliver Barret-Lindsay and Gannon Giguiere on Friday. In line with a press release, Watson was “an undisclosed management individual” at Lengthy Island Iced Tea, who shared unannounced plans to transform the corporate to a blockchain enterprise on the peak of the preliminary coin providing (ICO) increase.
Giguiere purchased 35,000 shares of the corporate’s inventory, which pumped on the information, then promoting after the announcement was formalized and making $160,000 on the sale.
Lengthy Blockchain, because the renamed company was referred to as, noticed its inventory value explode after the pivot was introduced. The corporate was later delisted from the Nasdaq inventory alternate.
The FBI was reportedly investigating whether or not Barret-Lindsay and Giguiere had profited off insider buying and selling way back to 2019.
In line with the SEC, the 2 are also defendants in an unrelated microcap fraud scheme.
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