Long Blockchain Company, a blockchain iced tea company, is being investigated by the SEC

Shutterstock

• Stock for the New York beverage company Long Island
  Iced Tea Company jumped by nearly 300% after it announced it
  was changing its name to the the “Long Blockchain Company” last
  December.
• The company announced it was shifting its focus from
  non-alcoholic beverages to blockchain technology and said that
  it planned to purchase 1,000 bitcoin mining rigs and partner
  with a blockchain-focused fintech company.
• Recently, the SEC began investigating the company,
  although few details regarding the investigation have
  emerged.

When a New York-based beverage company called Long Island Iced
Tea announced
that it planned to change its name to “Long Blockchain
Company” during the height of the cryptocurrency craze last
December, its stock jumped by nearly 500%.

The newly rebranded Long Blockchain Company’s foray into the
cryptocurrency-inspired technology was more than just a marketing
strategy. Long Blockchain Co. followed up with a series of
announcements that suggest that the beverage company had serious
ambitions as a technology company — despite
having no blockchain assets at the time of the announcements.

“Long Island Iced Tea Corp. is now focused on developing
and investing in globally scalable blockchain technology
solutions,” the company announced
last December. “[… It] is shifting its primary
corporate focus towards the exploration of and investment in
opportunities that leverage the benefits of blockchain
technology.”

So far, the company’s pursuits in blockchain technology include
the addition of two technology entrepreneurs to its board, a new
CEO, plans to purchase 1,000 bitcoin mining machines, and a
forthcoming partnership with a British, blockchain-focused
fintech company.

But now, the company’s blockchain involvement has drawn scrutiny
from the Security and Exchange Commission. Bloomberg reports the
SEC has been investigating the Long Island Iced Tea with a
request for documents dating back to early July. 

Long Blockchain Company, which didn’t immediately respond to
requests for comment from Business Insider, told Bloomberg that they
fully intend on cooperating with the SEC’s investigation. 

For now, the beverage company’s pivot to blockchain looks like it
might have been only a short-lived success. Since December,
the company’s market
value dwindled to under $5 million after the Nasdaq said it
planned to delist its stock.

Get the latest Bitcoin price here.>>