On June 5, 2019, Venkata Meenavalli, the CEO of a publicly traded commodities trading company known as Longfin Corp. (“Longfin”), was indicted on charges of securities fraud.  Authorities maintain that Longfin purportedly engaged in sophisticated commodities trading and so-called “cryptocurrency” transactions, including “blockchain-empowered solutions.”  Prosecutors have alleged that the commodities transactions reported by Longfin were actually “sham” events between Longfin and separate entities that Meenavalli controlled, and that Longfin reported in its public filings with the SEC a revenue of more than $66 million based on falsified bills of lading and other fraudulent documents.  Separately, the SEC has filed a civil fraud action against Longfin and Meenavalli for allegedly falsifying the company’s revenue and for fraudulently securing the company’s listing on Nasdaq.

United States v. Meenavalli, No. 19-cr-00402 (D. NJ.)

DOJ Press Release