Longfin Shares Resume Trade Over The Counter, SEC Investigation Still Looms
LongFin Corp (OTC:LFIN) shares were back moving Thursday after the stock resumed trading on the OTC market following a Nasdaq trading halt implemented on April 6.
The halt was related to an ongoing SEC investigation charging the company of fraudulent stock sales, but the stock has resumed trading on the OTC market after being delisted from the Nasdaq on Wednesday.
The stock traded around $6.62 on the OTC exchange at time of publication. The last time it traded on the Nasdaq, the stock closed at $28.19.
The LongFin drama started back in December when the company acquired blockchain business Ziddu.com during the height of the cryptocurrency and blockchain fever. Following the acquisition, Longfin’s share price exploded, and its market cap ballooned to $2.8 billion.
The stock gained momentum in February when FTSE Russell announced Longfin would be included in both the Russell 2000 and Russell 3000 indices, but FTSE Russell announced LongFin’s removal from the indices roughly a month later after the company failed to meet the Russel’s minimum liquidity requirement.
To make matters worse, CEO Venkat Meenavalli has made a pair of bizarre appearances on CNBC in which he blamed short sellers for attempting to destroy the company.
In an email to Benzinga, a Nasdaq representative said LongFin is no longer under the Nasdaq’s jurisdiction.
“The delisting became effective after the close [Wednesday] so Nasdaq no longer has jurisdiction and thus our halt is over. The company can now begin to trade OTC, but FINRA rules determine whether a member can quote it and how trades get executed,” the spokesperson said.
A representative from LongFin was not immediately available for comment.
Investors will now be waiting and watching for updates on the SEC investigation.
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