FBI Investigates Long Island Iced Tea’s Shift to Blockchain for Insider Trading Evidence

FBI’s Deep Dive into Long Blockchain

A twist of fate—or perhaps of ice—has landed Long Island Iced Tea (now Long Blockchain) in hot water. The FBI is on a mission to uncover potential insider trading and securities fraud stemming from the company’s infamous pivot from refreshment to crypto. Who knew that taking a sip of blockchain could stir up such trouble?

Breaking Down the Investigation

According to a recent warrant request uncovered by Quartz, the FBI seeks to expand an existing warrant to pry into encrypted WhatsApp messages that may hold the keys to proving the alleged trading scam linked to Long Blockchain. It’s like trying to find a cocktail recipe when all you have is a mystery ingredient—and a deadline to boot!

The Iced Tea That Became a Crypto Giant

Long Island Iced Tea made headlines in early 2018 when it rebranded itself as Long Blockchain. Overnight, its stock prices soared by a staggering 500%—a change as shocking as adding salt to a sweet beverage! Unfortunately for investors and thirst-quenchers alike, this sudden rise was short-lived, as the company eventually faced delisting from NASDAQ due to a market cap lower than what a vending machine could generate.

Encrypted Messages and Possible Pump-and-Dump Schemes

As the FBI digs deeper, they’re not just looking for any old text. Their keen eyes are set on encrypted messages from a smartphone seized during another securities fraud investigation involving Kelvin Medical. The two characters suspected of involvement, Oliver Lindsay and Gannon Giguiere, seem to have stirred up more than just iced tea—they may have stirred the pot of deception.

Allegations and Market Manipulation

The FBI’s warrant indicates probable cause that Lindsay’s encrypted messages could reveal discussions about confidential information regarding Long Blockchain. They may not be handing over cocktail shakers, but it sounds like plenty of shady business could be brewing. The specter of a classic pump-and-dump scheme lurks in this cocktail, raising red flags enough to make a whole bar’s worth of patrons uneasy.

Recent Developments

In an ironic twist, earlier this year, Long Blockchain’s previous beverage business was sold to ECC Ventures 2 Corp. Is it possible that the Iced Tea titan went from brewing drinks to brewing schemes? Only time—and perhaps a few legal summonses—will tell. So keep your cocktail glasses ready (but not too full); this story is still unfolding!