Fintech-Turned-Crypto Firm Tumbles as Citron Alleges Fraud

(Bloomberg) -- Longfin Corp., a fintech company whose stock surged 2,600 percent after it touted ties to cryptocurrencies, has fallen victim to the naysayers.

Shares of the New York City-based company plummeted as much as 14 percent to $61.50, the most intraday in more than a month, after short seller Citron Research alleged in a tweet that Longfin is a “pure stock scheme.”

“@sec_enforcement should not be far behind,” said Citron, which is run by Andrew Left, in the tweet Monday. “Filings and press releases are riddled with inaccuracies and fraud.”

Fintech-Turned-Crypto Firm Tumbles as Citron Alleges Fraud

“We don’t see any fraud,” said Lijie Zhu of Dragon Gate Investment Partners, Longfin’s investor-relations firm, in a phone call.

Longfin drew scrutiny in December after Chief Executive Officer Venkat Meenavalli got into a heated debate with news anchors during a CNBC interview. He said at the time that the firm’s surging market value was “insane” and “not justified.”

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