Shitcoin Dawn: SEC targets Veritaseum (VERI) | BTC-ECHO
The US Securities and Exchange Commission SEC has once again circled the regulatory hammer. This time it met with Veritaseum an Initial Coin Offering, which could collect between 2017 and 2018 $ 14.8 million in investor funds. The SEC has received approval from a New York court to freeze at least $ 8 million that Veritaseum had acquired by selling the VERI token.
The agency's focus is on Veritaseum founder Reginald Middleton. Im is accused of deliberately misleading investors. For example, the company founder is said to have spoken of a marketable product, even though there was no product at all. In addition, the SEC accuses Middleton of making false claims on the VERI token. In addition, Middleton should have begun to have transferred part of the collected funds to his private account. Especially the latter has called the SEC on the plan:
After hearing about Middleton's money transfer, we acted quickly to prevent the further dispersal of investor wealth
said Marc P. Berger, SEC Regional Director for New York, in a press release.
Whether in digital currency or in single currency, we will act to protect investors' assets and to track fraud and tampering on our securities markets.
In addition to investor compensation by Veritaseum, SEC seeks to ban Middleton from continuing to serve as director or director.
ICO without whitepaper
CriptomonedaseICO chief analyst dr. Philipp Giese already expressed strong doubts about Veritaseum in July 2017:
Veritaseum is an asset that gives cause for criticism. The fact that an ICO was made without a real white paper, that the website has a rather chaotic design and that the actual developer behind the coin does not yet have a reputation in the cryptosphere, is skeptical. This impression is supported rather than lessened by a very generic smart contract underlying the token sale,
so Dr. Giese at the time.
SEC vs. ICO
The Securities and Exchange Commission has been investigating hundreds of ICOs for some time. Above all, the legendary ICO Bubble 2017 has prompted the authorities to increasingly target initial coin offerings. The zealous hunt for ICOs has its root in the SEC's position that ICOs issued tokens are essentially security-type. This means that an ICO in the US mandatory registration of the SEC needed – which should be protected especially retail investors. Because of this rigorous attitude of the SEC, investors resident in the US are now excluded from most ICOs.
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