The US Securities and Exchange Commission (SEC) has started an investigation regarding Long Blockchain Corp. The former beverage manufacturer-turned-blockchain development company Long Blockchain Corp. has been issued a subpoena.

What Is It Important

According to Bloomberg, the subpoena comes after Nasdaq said it would delist the company’s stock. The firm now has a market value of less than $5 million, compared with nearly $70 million in December when it changed its name from Long Island Iced Tea Corp. to Long Blockchain.

In January, SEC announced that a close look would be kept at the companies that had changed their names in a blockchain-related euphoria.

Details of the case are not disclosed. The company officials is fully cooperating with the SEC’s investigation but cannot predict or determine whether any proceeding may be instituted by the SEC in connection with the subpoena or the outcome of any proceeding that may be instituted. Long Blockchain Corp. was a drinks manufacturer and used to be called Long Island Ice Tea. In January, it changed its name and their stock price went up 200%. The company announced its intentions to invest in blockchain projects and starts cryptocurrency mining project after selling 1.6 million securities. On August 1, the New York-based company announced it had changed its line of business to loyalty program schemes, which will be performed by a new subsidiary called Stran Loyalty Group.