The (former) Long Island Iced Tea Corp. is being investigated by the FBI for insider trading and securities fraud. The accusations are being linked to the company notoriously changing its name to ‘Long Blockchain Corp.’ in December of 2017 which subsequently caused its stock to explode by 300 percent.
During the ‘Bitcoin bubble’ of 2017, one particular company decided to use the bull market to its utmost advantage. Long Island Iced Tea notoriously changed its name on December 21, 2017. and announced it was “shifting its primary corporate focus” from tea to blockchain.
The end result was madness. Although the company’s stock jumped some 300 percent, it was later delisted from the Nasdaq stock market and investigations were initiated by the SEC and FINRA. Long Island Iced Tea tried to shamelessly latch onto the crypto-hype train, but it might soon come back to haunt them even more than it already has. It was recently announced that the FBI has issued a search warrant request for the company.
FBI Investigating Long Island Iced Tea Corporation’s Rebrand to ‘Long Blockchain’ For Securities Fraud
2 mins
By
Anton Lucian
Updated by
Kyle Baird
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