United

Fine

The United States Securities and Exchange Commission (SEC) has settled with Ideanomics, an electric vehicle (EV) company, following fraud charges related to financial reporting and public disclosures. 
<h2 id="b-ideanomics-did-not-reveal-the-truth-about-its-revenue-b">Ideanomics Did Not Reveal the Truth About its Revenue</h2> 
According to the <a href="https://www.sec.gov/newsroom/press-releases/2024-94">SEC’s report</a>, Ideanomics provided inaccurate and misleading information to the public, which inflated the company’s financial performance in the eyes of investors. The SEC’s investigation revealed that between 2017 and 2019, Ideanomics and some of its executives misled investors about its revenue, particularly its involvement with crypto assets.&nbsp; 
Also, the SEC alleged that the company reported revenues of over $40 million for 2019 based on fraudulent accounting related to a crypto asset transaction. The regulator claimed that these statements were either exaggerated or did not accurately reflect the company’s financial situation, leading investors to have a distorted view of Ideanomics’ business operations and profitability. 
<h2 id="b-everyone-involved-agreed-to-the-terms-of-settlement-b">Everyone Involved Agreed to the Terms of Settlement</h2> 
Meanwhile, the investigation affected Ideanomics’ former chairman and CEO, Zheng Wu, the current CEO, Alfred Poor, and the former chief financial officer, Federico Tovar. However, the <a href="https://thecoinrise.com/wahi-brothers-settle-with-sec-over-coinbase-insider-trading-charges/">settlement was reached, with all parties</a> agreeing to the terms without admitting or denying the SEC’s findings.&nbsp; 
Wu agreed to pay over $3 million in disgorgement, pre-judgement interest, and a $200,000 penalty. He also said he would not hold any managerial position in a public company for the next 10 years. Likewise, Tovar and Poor consented to a cease-and-desist order and will pay a fine of $75,000. Tovar will not practice as an accountant for the next two years.&nbsp; 
Furthermore, the company agreed to pay a $1.4 million charge while pursuing the hiring of an independent compliance consultant to review its internal accounting controls. 
<h2 id="b-sec-slaps-vaneck-with-1-75m-fine-b">SEC Slaps VanEck With $1.75M Fine</h2> 
Recall that in February, VanEck Associates Corporation, an investment adviser registered with regulatory authorities, <a href="https://thecoinrise.com/sec-slaps-vaneck-with-1-75m-fine-over-etf-marketing-violation/">agreed to pay $1.75 million in civil penalties</a> to resolve an allegation by the SEC. The fine involves its failure to disclose a social media influencer’s participation in introducing a new exchange-traded fund (ETF). 
The VanEck Associates agreed to the SEC’s order, acknowledging breaches of the Investment Company Act and Investment Advisers Act. Although the company did not admit or deny the SEC’s findings, it has consented to a cease-and-desist order, a censure, and the imposition of a monetary penalty. 
This settlement is a cautionary tale for investment advisers and ETF issuers regarding the importance of transparency in marketing practices, particularly as <a href="https://thecoinrise.com/huge-demand-continues-for-bitcoin-btc-etfs-deestream-dst-presale-as-both-look-to-skyrocket-in-just-months/">demands continue with a huge jump expected in months.</a> 
The post <a href="https://thecoinrise.com/sec-settles-with-ideanomics-following-major-fraud-charges/">SEC Settles With Ideanomics Following Major Fraud Charges</a> appeared first on <a href="https://thecoinrise.com">TheCoinrise.com</a>.

SEC Settles With Ideanomics Following Major Fraud Charges

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