The Securities and Change Fee has delisted the inventory of Lengthy Blockchain Corp. three years after the corporate modified its identify from Lengthy Island Iced Tea Corp. and launched into a failed transition into the cryptocurrency enterprise.
The SEC order, efficient Monday, cited the “safety of buyers” and Lengthy Blockchain’s failure to file annual experiences since one protecting calendar 2017 and quarterly experiences because the one for the interval ended Sept. 30, 2018.
Regardless of the Farmingdale firm’s identify change in December 2017, its “blockchain enterprise by no means grew to become operational,” the SEC stated.
The SEC submitting stated the regulatory company agreed to a settlement provide from Lengthy Blockchain, however didn’t present particulars on the scope of the case.
Calls searching for remark from the SEC and Lengthy Blockchain chief government Andy Form weren’t instantly returned.
In July 2018, the SEC subpoenaed paperwork from Lengthy Blockchain in reference to an investigation, however it stays unclear if fees might be lodged in that case.
Buying and selling of Lengthy Blockchain inventory was halted after the shares closed at $1.12 in over-the-counter buying and selling on Friday. In June 2018, the corporate’s inventory was moved to over-the-counter buying and selling after being delisted by the Nasdaq Inventory Market.
In March 2018, Lengthy Blockchain grew to become a nationwide punchline after HBO’s “Final Week Tonight with John Oliver” devoted a prolonged phase to the company identify change and a subsequent enhance in its inventory value.
The inventory soared greater than 180% instantly after the identify change was introduced.
Since that point, the corporate has gone by way of a number of CEOs and introduced quite a lot of unrealized methods associated to cryptocurrencies, together with a plan to purchase specialised computer systems that “mine” bitcoin, probably the most broadly identified cryptocurrency.
A 12 months in the past, privately held Stran & Firm Inc. referred to as off a plan to merge with Lengthy Blockchain as a result of the businesses can be “unable to fulfill all vital closing circumstances” inside an inexpensive period of time, in keeping with a information launch.
Stran, primarily based in Quincy, Massachusetts, and led by Lengthy Blockchain CEO Form, is a marketer of promotional and branding merchandise.
The nonbinding merger deal referred to as for Lengthy Blockchain to take a brand new identify reflecting its new deal with promotional merchandise. Monetary phrases of that deal weren’t disclosed.
Lengthy Blockchain continues to function its beverage subsidiary, now generally known as Lengthy Island Model Drinks. Lengthy Blockchain agreed to promote the ready-to-drink beverage unit to ECC Ventures 2 Corp., primarily based in Vancouver, British Columbia, however that deal has but to shut.
A blockchain is a decentralized type of a digital database that tracks transactions, together with transfers of cryptocurrencies akin to bitcoin.
Bitcoin itself has been extremely risky. On Tuesday afternoon, the digital foreign money was buying and selling at about $46,000, down 16%.
Nonetheless, bitcoin has climbed nearly 400% up to now 12 months and is buying and selling far increased than ranges seen in December 2017, when it peaked at about $14,000.