The SEC and Ideanomics have reached a settlement over fraudulent financial reporting related to $40 million in cryptocurrency revenue

2024-08-10 17:45:10

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ChainCatcher news, according to Cointelegraph, the U.S. SEC has reached a settlement with Ideanomics over a $40 million cryptocurrency revenue fraud financial reporting.

The SEC accused Ideanomics of reporting over $40 million in revenue through false accounting related to cryptocurrency trading in 2019. This false reporting led to an overstatement of financial statements, deceiving shareholders and the public, causing them to misunderstand the company's financial condition.

Reportedly, all parties involved agreed to the settlement, neither admitting nor denying the findings of the U.S. SEC's investigation. Former Chairman and CEO Bruno Wu agreed to pay over $3.3 million in illegal gains, pre-judgment interest, and a $200,000 penalty.

Ideanomics agreed to pay a $1.4 million fine and will hire an independent compliance consultant to review and strengthen its internal accounting controls.

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U.S. SEC Ideanomics financial report

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