SEC charges Veritaseum with fraud ICO

Posted 13 August, 2019

The US Securities and Exchange Commission has reportedly lodged a complaint against Reginald Middleton from New York and companies connected with Veritaseum charging illegal ICO with fraud features. The lawsuit was filed on August 12, 2019.

The document released by the authority shows that the Commission wants the court to put to justice Reginald Middleton and freeze all the assets of Veritaseum Inc. and Veritaseum LLC.

The regulator claimed in the complaint that the subject individual and companies attracted about $14.8 million via ICO held in 2017-early 2018. At the same time, they applied fraud practices since many investors had been misinformed. In particular, the companies provided wrong data about token sale and concealed some essential facts.

Moreover, SEC believes that the company still has about funds worth $8 million that were received illegally.

The launch of this case has smashed the price for Veritaseum (VERI), which plunged by 70%. As a result, the current price is $5 per coin compared practicaly to $500 in early 2018.

For reference, Veritaseum was designed as financial p2p platform to move funds without traditional intermediaries. The token in its turn was also claimed to be utility-token for consulting services and access to research papers.

It was also reported that the US SEC announced its decision to delay the determination on bitcoin-ETF proposals till autumn.

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