SEC and Ideanomics settle crypto revenue reporting fraud charges
According to the report, all parties involved have agreed to settle the charges without admitting or denying the SEC’s findings
The United States Securities and Exchange Commission (SEC) has settled fraud charges with electric vehicle company Ideanomics over financial reporting and “misleading the public about the company’s performance.”
According to the SEC website, its investigation revealed that between 2017 and 2019, Ideanomics and several of its senior executives engaged in significant material misrepresentations about the company’s financial performance. The charges specifically involved misleading investors about the company’s revenue from crypto assets.
The SEC alleged that Ideanomics reported revenues of over $40 million for 2019 based on fraudulent accounting related to a crypto asset transaction. The agency claimed that the false reporting led to overestimated financial statements, misleading shareholders and the public about the company’s financial health.
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Author: Amaka Nwaokocha
