The U.S. Securities and Exchange Commission has filed charges against three people accused of insider trading with the Long Blockchain Company related to changing its name from the Long Island Iced Tea Company.
In a Friday announcement, the SEC said Eric Watson, Oliver Barret-Lindsay, and Gannon Giguiere were facing charges in the U.S. District Court for the Southern District of New York for their role in trades connected to rebranding a beverage business to a blockchain firm, which caused the company’s stock price to rise significantly. Giguiere purchased 35,000 shares of Long Blockchain after having been allegedly tipped off to the change by Barret-Lindsay, who was first alerted by Watson.
The decision to change the firm from Long Island Iced Tea to Long Blockchain happened in early 2018. After the company rebranded to focus on blockchain development, the stock price surged by 289% — more than 380% intraday according to the SEC. Giguiere subsequently sold his shares for more than