Sally Ho's Technical Analysis 8 December 2019 BTC ETH

28m
cryptodaily

Ripple Struggles above $0.22 May Face Rejection at $0.23 or $0.24

40m
coinidol

Binance Coin Slightly Outperforms Bitcoin in Year-over-year Growth » The Merkle Hash

40m
cryptonewmedia

Less Than 4 Hours Left, What’s Happening

1h
cryptonewmedia

Microsoft Azure Announces Blockchain Token and Data Management Service

1h
cointelegraph

Here’s how Bitcoin’s role in protesting movements is changing

2h
bitcoinwarrior

Bitcoin On-Chain Momentum Is Crossing Bullish: Willy Woo

2h
cryptonewmedia

Ethtrader Users Are Pleased With the DONUT Token Launch

3h
nulltx

Bitcoin On-Chain Momentum Bullish Again, Traders to Push Prices Higher

3h
cryptonewmedia

Blockchain To Ensure ‘Ethical Provenance of Gold’, Protect Miners Health

3h
cryptonewmedia

Ethereum Istanbul — Faster, but Still Not the World Computer

4h
cointelegraph

Compliant KYC Verification Doesn’t Require Users to Submit Identity Documents » The Merkle Hash

4h
cryptonewmedia

Bitcoin On-Chain Momentum Bullish Again, Traders May Push Prices...

4h
newsbtc

Russian policemen illegally seize mining farm and mine cryptocurrency

4h
coinfox

Bitcoin Price Diary: 6 Altcoins That Are Currently Making Me Avoid BTC

4h
cointelegraph

France to issue digital euro in 2020

5h
coinfox

Analytics: Bitcoin Price Bottom is Close, Bullish Reversal to be “Strong”

5h
cryptonewmedia

Ethereum Is Under Pressure to Bounce; Can It Overcome the Resistance at $150 and $160?

5h
coinidol

Ethereum Client Forgets EIP Inclusion, Asks Users for Another Upgrade

6h
cryptonewmedia

Analytics: Bitcoin Price Bottom is Close, Bullish Reversal to be...

6h
newsbtc

Crypto Tidbits: Deutsche Bank Gives Nod to Bitcoin, EOS to Host Social Media, France Digital Currency

6h
cryptonewmedia

T-Minus 1,000 Blocks Until Ethereum’s Istanbul Hard Fork

6h
cointelegraph

Bitcoin’s Domination May Rise According to One Analyst

7h
utoday

SBI Holdings Considering XRP Shareholder Benefit Program

7h
cryptoglobe

Crypto Tidbits: Deutsche Bank Gives Nod to Bitcoin, EOS to Host...

7h
newsbtc


Veritaseum ICO issuers facing SEC legal action for alleged fraud, VERI drops 60%

cryptoslate

4mon ago

The Securities and Exchange Commission (SEC) is ramping up its efforts to combat crypto fraud. The Commission filed an emergency legal action against the owner of Veritaseum, Reggie Middleton, whose ICO raised almost $15 million—obliterating the price of VERI.

The SEC is ramping up actions against unscrupulous ICOs. Although the Commission has been attempting to combat fraud and manipulation in the crypto industry attentively for the last five years, only recently have controversial enforcement actions been issued.

The latest example of the SEC tightening its regulatory grip is the legal complaint filed with the U.S. District Court for the Eastern District of New York.

According to court documents shared by the Hindenburg Research, the complaint was filed against Reginald Middleton, a New York resident accused of conducting an unregistered token sale. The SEC claims that Veritaseum Inc. and Veritaseum LLC—two companies controlled by Middleton—raised $14.8 million through the sale of 51 million VERI tokens between late 2017 and 2018.

The regulator called for an emergency stop action to prevent Middleton, a self-proclaimed “financial guru,” from accessing the funds that remained from the VERI coin offering. Court documents showed that Middleton currently has access to around $8 million of investor funds.

Middleton and his companies made “material misrepresentations and omissions about the unregistered securities” his companies offered and “knowingly misled investors about their prior business venture,” the court documents asserted.

The base of SEC’s case lies in the fact that Middleton reportedly tried to pass off VERI tokens as “software,” even going as far as calling them “gift cards.” All of this, the commission claims, makes the entire offering illegal. “There was no registration statement filed or in effect for the offers and sales of VERI, and no exemption from registration applied,” continued the filing.

Apart from misrepresenting the tokens, Middleton was also accused of fabricating trading volume on an unnamed exchange to artificially pump the price of the tokens. The documents showed that Middleton was able to inflate VERI’s price by 315 percent in a single day.

VERI token plunged nearly 60 percent after the SEC’s scrutinization.

Earlier this month, Middleton was asked to voluntarily agree to stop selling and distributing the investor funds that remained with him, but both he and his associates reportedly refused to do so. This, the SEC said, is what ultimately led to the complaint being filed.

While there is still a lot to unfold in the case, the SEC’s accusations will be hard to refute. And judging by the commission’s long-running war against fraudulent and unregistered coin offerings, Middleton is up for one hell of a legal battle.

Veritaseum, currently ranked #200 by market cap, is down 49.02% over the past 24 hours. VERI has a market cap of $17.53M with a 24 hour volume of $1.44M.

Chart by CryptoCompare

Veritaseum is down 49.02% over the past 24 hours.

Subscribe to CryptoSlate Recap, our daily newsletter containing the top stories and analysis.

Priyeshu is a software engineer who is passionate about machine learning and blockchain technology. He holds an engineering degree in Computer Science Engineering and is a passionate economist. He built his first digital marketing startup when he was a teenager, and worked with multiple Fortune 500 companies along with smaller firms. When he is not solving the transportation problems at his company, he can be found writing about the blockchain or roller skating with his friends.

Commitment to Transparency: The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.

Disclaimer: Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.

Regarding any copyrights issue, please contact us:content@hashbee.com.

0 comments