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SEC Settles Fraud Charges with Ideanomics: Ex-CEO Wu Faces $3.3M Penalty, 10-Year Ban

Aug 10, 2024, 07:02 AM

The Securities and Exchange Commission (SEC) has settled fraud charges against Ideanomics Inc., formerly known as Seven Stars Cloud Group Inc., and its former Chairman and CEO, Zheng (Bruno) Wu. The charges were related to misleading the public about the company's financial performance by inflating 2019 crypto revenue figures in a $40 million fraud case. As part of the settlement, Wu faces a $3.3 million penalty and a 10-year ban from holding roles in public companies. Additionally, former CFO Federico Tovar and another executive each received $75,000 fines, with Tovar also barred from SEC-related roles. The settlement underscores the SEC's commitment to addressing inaccurate financial reporting.