Media outlets report that Long Blockchain has been issued a subpoena by the U.S. Securities and Exchange Commission. The beverage producing company made media rounds in 2017 when its shares rose after it turned to blockchain. And also changed its name from Long Island Iced Tea to Long Block chain to that effect.
Probe into Long Blockchain
The company submitted an 8-K form to the SEC on July 26, and it was revealed earlier this week that the firm was subpoenaed on July 10. The subpoena had SEC seeking that Long Blockchain produced some documents. And the firm also noted that it is currently in full cooperation with the investigation of the Commission. Long Blockchain, however, refused to disclose the details of the documents the SEC requested.
It is worthy to note that this subpoena is coming about four months following the delisting of the firm from the Nasdaq stock exchange after it lost an appeal bordering on a decision and consequent drop in its stock’s value. Earlier this year, the firm already warned that it was at the risk of being delisted as the SEC was of the belief that the firm "made a series of public statements designed to mislead investors and to take advantage of general investor interest in bitcoin and blockchain technology.”
Probe into other firms
The probe into Long Blockchain isn’t the first time. Infact, that SEC would look into the affairs of firms who recorded surges in their share prices after they indicated their relation to blockchain. For instance, in April, the SEC reportedly sent a subpoena to Riot Blockchain after it became a popular attraction in a manner similar to that of Long Blockchain late in 2017. The company also currently faces the risk of being delisted from Nasdaq.
The current probes by the SEC constitutes a portion of its broader efforts to extensively scrutinize some public companies. However, pertaining in a bid determine the authenticity and genuineness of their claims with relations with blockchain technology.
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