Overview
- An Oct. 28 SEC filing detailed that the company issued stock tied to a $558 million PIPE without the required shareholder vote.
- Nearly half of the PIPE proceeds—about $273 million—funded purchases of toncoin, leaving the firm with 217.5 million tokens.
- Nasdaq flagged the rule breach but did not pursue delisting after determining the violations appeared unintentional.
- Toncoin fell roughly 5% over 24 hours with trading volumes jumping above recent averages following the disclosures and reprimand.
- Shares of TON Strategy (ticker: TONX) slipped about 1.16% as investors weighed the governance lapse and ongoing exchange scrutiny.