A would-be blockchain investment company which previously sold lemonade just had its shares delisted by the SEC over alleged foul play.
In brief
Long Blockchain Corp used to be known as Long Island Tea Corp.
The company went from selling iced-tea to supposedly investing in blockchain projects.
But it has got itself into trouble and today had its shares delisted by the SEC.
A former iced-tea company that became a blockchain investment company has had its shares delisted by the US Securities and Exchange Commission (SEC) after failing to file financial updates.
Long Blockchain Corp—previously known as Long Island Tea Corp—has not filed a quarterly report since September 2018, Bloomberg reported today. It is now no longer allowed to trade.
The company used to sell lemonade and non-alcoholic iced-tea but rebranded around the time of the 2017 Bitcoin bull run. It experienced some quick success—and its stock pumped by 500% at the time.
But the company struggled when the price of Bitcoin crashed, and got kicked off the Nasdaq in 2018. It has since been investigated for alleged foul play by the FBI and SEC.
The SEC‘s Friday order said that Long Blockchain Corp’s big plan to move to the cryptocurrency world was a failure.
“In December 2017, the company changed its name to LBCC and announced that it was shifting its business operations from soft drink production to activities related to blockchain technology.” the SEC said.
“Its blockchain business never became operational.”
Long Blockchain Corp isnt the only iced-tea-turned-blockchain company. Chinese tea company, Urban Tea, this month announced it would be moving into the world of blockchain and cryptocurrency mining. Like its predecessor, it too enjoyed a boost to its stock price following its announcement: jumping 15% on the news.
Is it destined for the same fate？ Investors would no doubt love to be able to read those tea leaves.