SEC Charges 3 for Insider Trading Over Long Island Iced Tea's Blockchain 'Pivot'

One insider bought 35,000 shares of the company’s stock, which pumped on the news, selling after the announcement was formalized.

AccessTimeIconJul 9, 2021 at 5:36 p.m. UTC
Updated Sep 14, 2021 at 1:23 p.m. UTC

The U.S. Securities and Exchange Commission (SEC) charged three individuals with insider trading on allegations they bought shares of Long Island Iced Tea ahead of its 2017 announcement it would pivot to a blockchain-based business model.

The SEC charged Eric Watson, Oliver Barret-Lindsay and Gannon Giguiere on Friday. According to a press release, Watson was “an undisclosed control person” at Long Island Iced Tea, who shared unannounced plans to convert the company to a blockchain business at the height of the initial coin offering (ICO) boom.

Giguiere bought 35,000 shares of the company’s stock, which pumped on the news, then selling after the announcement was formalized and making $160,000 on the sale.

Long Blockchain, as the renamed corporation was called, saw its stock price explode after the pivot was announced. The company was later delisted from the Nasdaq stock exchange. 

The FBI was reportedly investigating whether Barret-Lindsay and Giguiere had profited off insider trading as far back as 2019.

According to the SEC, the two are also defendants in an unrelated microcap fraud scheme.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.


CoinDesk - Unknown
Three Arrows Paper Trail Leads to Trading Desk Obscured Via Offshore Entities

As Three Arrows Capital collapsed under market pressure, its much-lesser known trading desk, TPS Capital, remained active, sources say. But a complex ownership structure might frustrate creditors' efforts to collect.

CoinDesk - Unknown
CoinDesk - Unknown
June Was Bitcoin’s Worst Month Ever

Plus, European crypto regulation comes into view.

CoinDesk - Unknown
CoinDesk - Unknown
What Traders Are Saying About Bitcoin's Biggest Monthly Loss in 11 Years

Poor macroeconomic sentiment, fears of inflation and systemic risks from the crypto market pushed the cryptocurrency below 2017’s highs.

CoinDesk - Unknown
CoinDesk - Unknown
Three Arrows Capital Files for Bankruptcy in New York Tied to British Virgin Islands Proceeding

A British Virgin Islands court ordered Three Arrows' BVI branch into liquidation earlier this week.

CoinDesk - Unknown