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SEC

SEC Accuses Veritaseum of Scam

The Security and Exchange Commission (SEC) has filed a lawsuit against the New York team of the Veritaseum project, accusing the developers of running an illegal ICO with several fraud indications.

According to the documents published on the web, SEC is going to bring Reggie Middleton to justice and freeze the assets of Veritaseum Inc., and Veritaseum LLC.

The commission claimed that the defendants had attracted $14,8 million during the ICO held in 2017-2018, having misled a lot of investors by distorting information and concealing some important details.

The American regulator stated that the project still has $8 million out of the illegally attracted funds, which should be immediately frozen, as per SEC.

Against the backdrop of the news, the price of Veritaseum (VERI) has dropped by 70%. Now, the coin is traded at a $5 price, although it had been approaching the level of $500 at the beginning of 2018.

Veritaseum was designed as a financial p2p platform operating the fund movement without traditional mediators, while VERI was depicted as a utility token for consulting services, and to get access to different researches.

In 2017, the blockchain startup became a victim of hackers, having lost $8,4 million of the ICO means.

We recall that SEC accused Kik of violating the Securities Act.