2024

Cloud

The U.S. Securities and Exchange Commission (SEC) has settled with Ideanomics Inc. after an investigation revealed that the company engaged in fraudulent financial reporting from 2017 to 2019.&nbsp;
SEC discovered that Ideanomics and several of its top executives provided false information, particularly about the company’s revenue from cryptocurrency transactions.
According to the SEC, Ideanomics reported over $40 million in revenue for 2019 based on inaccurate accounting related to a crypto asset deal. This false reporting gave shareholders and the public a misleading picture of the company’s financial situation.
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 Today we announced settled fraud charges against Ideanomics Inc., formerly Seven Stars Cloud Group Inc., and its former Chairman &amp; CEO, Zheng (Bruno) Wu, for misleading the public about the company’s financial performance. <a href="https://t.co/7tLI2tnP7o" target="_blank" rel="noopener noreferrer nofollow">https://t.co/7tLI2tnP7o</a>— U.S. Securities and Exchange Commission (@SECGov) <a href="https://twitter.com/SECGov/status/1822017718167433305?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">August 9, 2024</a>
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The investigation pointed to the main individuals involved in the misconduct, including former Chairman and CEO Zheng (Bruno) Wu, current CEO Alfred Poor, and former Chief Financial Officer Federico Tovar.
The SEC found that these individuals participated in various deceptive activities, such as giving false revenue predictions in 2017 and submitting fake documents to the company’s auditor. Additionally, the investigation revealed that Wu hid his personal involvement in businesses that were doing deals with Ideanomics.
As part of the settlement, Wu agreed to pay over $3.3 million, covering disgorgement, prejudgment interest, and a penalty. He also accepted a 10-year ban from holding any directorship or executive position in a public company. Tovar and Poor agreed to stop the misleading activities and will each pay $75,000 in penalties.&nbsp;
Additionally, Tovar will be banned from practicing as an accountant before the SEC for two years. Ideanomics has also agreed to pay a $1.4 million penalty and will bring in an independent consultant to review and improve its internal accounting controls.
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 Also Read: <a href="https://www.cryptotimes.io/2024/08/10/vcs-have-slowed-investing-in-crypto-by-a-lot/" rel="noopener noreferrer nofollow">“VCs Have Slowed Investing In Crypto By A Lot” — Venture Capitalist</a>
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SEC Settles with Ideanomics Over $40M Fraudulent Crypto Revenue Reports

The Crypto Times

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