Nasdaq Warns TON Strategy: $558M Unauthorized Toncoin Buys
Nasdaq has issued a warning to TON Strategy after it completed a $558 million PIPE financing on August 7 with Kingsway Capital and used nearly half the proceeds to buy Toncoin without securing required shareholder approval under Nasdaq rules. The breach, detailed in an SEC 8-K, stemmed from issuing ordinary shares exceeding the 20% threshold without consent. Nasdaq deemed the violation unintentional and halted short of delisting, but formally censured the firm.
The 8-K also revealed a leadership reshuffle: former TON Foundation chair Manuel Stotz was appointed executive chairman. CEO Veronika Kapustina, who has previously cautioned against asset treasury bubbles in digital assets, remains at the helm.
TON Strategy’s share price surged from $9 to $22 in late summer before plunging to $4.14—a near 80% drop. Traders should monitor regulatory compliance, governance risks, and crypto treasury management trends to gauge the impact on Toncoin and related token markets.
Bearish
Toncoin prices may face downward pressure after Nasdaq’s warning, as traders reassess regulatory compliance and governance risks tied to large-scale token purchases by a public company. In the short term, the censure and the unauthorized $558M Toncoin buy highlight potential control failures, likely triggering sell-offs and heightened volatility. Over the longer term, intensified scrutiny on corporate crypto treasury strategies could deter similar institutional investments and temper demand for Toncoin despite broader market recovery.