SEC Freeze of Blockchain-Linked Funds Backed by Federal Judge

A federal judge ruled three business associates of a financial technology company are likely to lose at a trial over government accusations that they sold unregistered stock in the firm after a rally linked to cryptocurrency.

U.S. District Judge Denise Cote in Manhattan granted a preliminary injunction and maintained a freeze on $27 million of assets of Andy Altahawi, Suresh Tammineedi and Dorababu Penumarthi, who are associated with New York-based Longfin Corp. The U.S. Securities and Exchange Commission case filed April 4 also named Longfin Chief Executive Officer Venkata S. Meenavalli.

The agency “is likely to prove at trial that ...