Long Blockchain Gets SEC Subpoena, Changes Strategy Again

Long Blockchain Corp, previously known as Long Island Iced Tea, has received a subpoena from the SEC. The company is making another change - moving into the gift cards industry.

The former beverage company, which rebranded as Long Blockchain Corp during the crypto mania in December 2017, has been officially approached by the US Securities and Exchange Commission (SEC). The subpoena from the regulator dates from July 10 but was revealed in a filing on Wednesday. Long Blockchain did not provide other details apart from stating it was “fully cooperating” and added:

“The company cannot predict or determine whether any proceeding may be instituted by the SEC in connection with the subpoena or the outcome of any proceeding that may be instituted.”

Publicly traded Long Island Iced Tea decided to change its name to Long Blockchain amidst the crypto craze of late 2017. What followed can be described as a short-term rally and subsequent collapse, as illustrated by this graphic from Bloomberg:

The New York-based company announced plans for running a Bitcoin mining operation not long after the rebranding, but the idea was later abandoned. This is one of the main factors behind the price action presented above – the company was valued at approximately $70 million at one point and is now worth less than $5 million.

Long Blockchain’s troubles extend beyond the SEC subpoena as NASDAQ is looking into delisting the company. The name change and the following roller-coaster ride seem to have put regulators and exchange officials alike on high alert.

The latest chapter for Long Blockchain involves moving into loyalty programs. It has created a new subsidiary, Stran Loyalty Group, to enter the space and plans to “implement disruptive technology solutions, including distributed ledger technology.” Andy Shape, the founder and president of Stran Promotional Solutions, has been appointed as the new chairman and CEO of Long Blockchain.