One of the first companies to pivot to crypto is getting eviscerated after being ousted from the Russell
- Longfin will be removed from the Russell 2000 index after market close Thursday.
- The company saw its stock pop 2,400% after pivoting to blockchain.
Longfin, a little-known import/export financier who's stock popped 2,400% after purchasing a blockchain company, has lost three-quarters of its book value this week after being kicked off FTSE's Russell index.
The New York-based firm, listed in London, is set to be removed from the Russell 2000 index Thursday after failing to keep at least 5% of its shares available to the public, the exchange said in a statement Monday.
Shares of Longfin originally traded at just over $5 when the company originally went public, but spiked as high as $72.38, according to Markets Insider data, after announcing it had bought Ziddu, a blockchain company specializing in business-to-business warehouse payments.
To add to Longfin's pain, well-known short-seller Andrew Left's Citron Research accused the company of fraud shortly after the announcement from FTSE.
"If you are fortunate enough to get a borrow, indeed $LFIN is a pure stock scheme. @sec_enforcement should not be far behind," Citron tweeted. "Filings and press releases are riddled with inaccuracies and fraud."
Despite the steep losses, Longfin's stock is up 233% since its IPO.
