The Securities and Exchange Commission Keeps $27,000,000 Asset Freeze Over Longfin Share Proceeds (U.S. District Cout Southern District of New York 18cv2977 (DLC), Opinion by ARNOLD F. SOCK, Attorney at Law
The U.S. Securities and Exchange Commission ("SEC") can maintain a $27 million asset freeze against three affiliates of the financial technology firm Longfin Corp. who allegedly made millions on the sale of restricted shares, a New York federal judge said in an order on Tuesday that extends the freeze pending trial in the U.S. District Cout Southern District of New York Case 18cv2977 (DLC).
U.S. District Judge Denise Cote said the SEC had sufficiently pled that Andy Altahawi, Suresh Tammineedi and Dorababu Penumarthi sold unregistered securities of Longfin in the months after it acquired blockchain technology company Ziddu.com..The court belivved that the SEC is likely to win on the merits, so it kept the asset freeze in place. If the government can show it is likely to win, what happened is the expected result when the freeze is challenged.
Opinion by ARNOLD F. SOCK, Attorney at Law