Longfin’s obligatory $6.7M penalty payment from SEC

Recently, The United States District Court for the Southern District of New York has ordered Longfin to pay 6M USD in penalties for its actions.

Longfin is a US-based, global Financial Technologies company powered by Artificial Intelligence. The company conveys forex and finance solutions. Longfin has operations in New York, Dubai, London, Singapore, Miami, and India.

On September 30, the SEC (Securities and Exchange Commission) announced that a New York federal court entered a default ruling against one fintech company.  It was charged with falsifying revenue from fraudulent commodities transactions and a sham public offering. Also, it Falsely obtained qualification for Regulation A+ offering.

According to the SEC, Longfin falsely obtained qualification for a regulation. The SEC conducted investigations with the help of experts, the Federal Bureau of Investigation and the U.S. Attorney’s Office for the District of New Jersey. The company also claimed that its firm was operating within the U.S. However, all of the company’s operations, assets and management were in fact outside of the mentioned state’s border. Allegedly, Longfin fabricated up to 90% of its revenue and sold over 400,000 shares to affiliates and insiders. In addition, it misrepresented a large number of qualifying shareholders.

$24 million settlement with Block.one

In addition, it made another announcement on September 30.  It settled on an agreement with Block.one to pay $24 million in penalties for conducting an unregistered initial coin offering. Also, Block.one failed to register its ICO. However, it raised the equivalent of billions of dollars. Block.one is an open-source software publisher. It provides blockchain solutions and financial strategic planning.