SEC, Ideanomics Settle $40 Million Crypto Fraud Case

The SEC’s investigation revealed significant fraud in the company’s financial performance, particularly with regard to cryptocurrency revenues between 2017 and 2019.

The investigation’s findings revealed that Ideanomics and its senior executives misreported over $40 million in revenue in 2019 through the sale of cryptocurrencies, using illegal accounting methods.

This manipulation inflated the company’s financial statements and misrepresented its financial position to the public and shareholders.

The investigations indicated that these individuals were involved in multiple fraudulent schemes, including providing false information to auditors, submitting a misleading letter of intent, and concealing Wu’s personal stake in companies related to Ideanomics.

As part of the settlement, Cheng (Bruno) Wu agreed to pay a $200,000 fine, plus pre-judgment and default interest, bringing the total to more than $3.3 million. Ideanomics, for its part, agreed to pay a $1.4 million fine and hire an outside compliance consultant to evaluate and improve its internal accounting procedures.