Long Blockchain says that it has been subpoenaed by the SEC
Long Blockchain Corp., which uses this logo, used to be called Long Island Iced Tea Co. Credit: Long Block Chain Corp.
Long Blockchain Corp., the Farmingdale company formerly known as Long Island Iced Tea Corp., said it has been subpoenaed by the Securities and Exchange Commission.
The subpoena is seeking documents, according to a regulatory filing on Wednesday. Long Blockchain didn’t say in its filing which documents the SEC requested.
“The company is fully cooperating with the SEC’s investigation,” Long Blockchain stated in the filing. “The company cannot predict or determine whether any proceeding may be instituted by the SEC in connection with the subpoena or the outcome of any proceeding that may be instituted.” The subpoena was dated July 10.
A call Thursday morning to the company for comment wasn’t returned.
Shares of the company fell 12.7 percent to close at 30 cents Thursday.
In December, the company announced it was changing its name and would focus on blockchain, the technology behind the digital currency bitcoin. Blockchain is a digital ledger sheet where transactions in cryptocurrencies such as bitcoin are recorded.
The SEC has warned companies not to change their name to blockchain. In his opening remarks in January at the Securities Regulation Institute, SEC Chairman Jay Clayton said he doubts “anyone in this audience would think it would be acceptable for a public company” without a meaningful blockchain record to start dabbling in blockchain activities, change its name to reflect it is a blockchain company or “immediately offer securities” without providing adequate disclosure about the risks involved.
Long Blockchain last month named Andy Shape its new chairman and chief executive.
It also formed a subsidiary focused on loyalty and gift-card programs for corporate brands.
Shape replaces Shamyl Malik, a financial services industry veteran who took over in February. Shape is co-founder and president of Stran & Co. Inc., a promotional marketing company based in Quincy, Massachusetts.
Stran is also partnering with a new Long Blockchain subsidiary focused on the loyalty and gift-card programs.
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