ChainCatcher reported that according to Cointelegraph, the U.S. SEC reached a settlement with Ideanomics over fraudulent financial reporting of $40 million in cryptocurrency revenue.

The SEC alleges that Ideanomics reported more than $40 million in revenue in 2019 through false accounting related to crypto asset trading. This false reporting resulted in overstated financial statements and deceived shareholders and the public about the company’s financial condition.

All parties involved reportedly agreed to the settlement, neither admitting nor denying the SEC’s findings. Former chairman and CEO Bruno Wu agreed to pay more than $3.3 million in disgorgement, prejudgment interest, and a $200,000 penalty.

Ideanomics, for its part, agreed to pay a $1.4 million fine and will hire an independent compliance consultant to review and strengthen its internal accounting controls.