U.S. SEC settles with Ideanomics over earnings fraud involving $40 million in cryptocurrencies

U.S. SEC settles with Ideanomics over financial reporting fraud involving $40 million in cryptocurrency.
The SEC alleges that Ideanomics Inc. reported more than $40 million in revenue in 2019 through false accounting related to trading in crypto assets. This false reporting resulted in overstated financial statements that deceived shareholders and the public about the company's financial condition.
All parties involved in the case reportedly agreed to settle, neither admitting nor denying the U.S. SEC's findings. Former Chairman and CEO Bruno Wu agreed to pay more than $3.3 million in ill-gotten gains, pre-judgment interest and a $200,000 penalty. Ideanomics agreed to pay a $1.4 million penalty and will hire an independent compliance consultant to review and strengthen its internal accounting controls.