In a ruling on Tuesday, a federal district court in Manhattan approved a motion filed by the Securities and Exchange Commission (SEC) to grant a preliminary injunction and a continued freeze on $27 million in assets owned by Andy Andy Altahawi, Dorababu Penumarthi, and Suresh Tammineedi, a trio associated with Longfin Corp.
Notably, US District Judge Denise Cote said the trio is likely to lose a trial against the government, suggesting the latter is likely to prove that the three individuals illegally profited from the alleged sale of restricted shares.
The Judge wrote in a court order:
The SEC has carried its burden of showing a likelihood of success of proving at trial that the three defendants violated Section 5 in selling their shares.
Earlier in December 2017, Longfin, which claims to be a fintech firm, saw its value surge as much as 2,600% after announcing its purchase of Ziddy.com…