The US Securities and Exchange Commission (SEC) filed a complaint against a New York resident and two of his companies on suspicion of conducting an unregistered ICO from the end of 2017 to 2018.
The Commission requires that the court issue a permit for an emergency freezing of the defendants ‘ assets. According to the document, the SEC has officially filed a complaint against Reginald Middleton, the New York company Veritaseum Inc and the Delaware-based company Veritaseum LLC.
The SEC claims that the defendants raised about $14.8 million through the ICO from the end of 2017 to the beginning of 2018 and claims that investors suffered from material misrepresentations during this campaign. In addition, the SEC believes that according to the results of this ICO, about $8 million remained in the form of investor income, and the Commission requires that the assets of the accused be immediately frozen.
The Commission also requests that the court issue an order to prevent the defendants from interfering with the SEC’s access to relevant documentation, for example, by destroying it. According to the application, the companies sold VERI tokens, which were issued on the Ethereum blockchain and tied to ETH in a ratio of 30:1.
The defendants reportedly advertised VERI as an instrumental token and stated that it could be exchanged for advisory services and supposedly unlimited access to research.
It is not the first time that the SEC is trying to bring unscrupulous ICO projects to justice. In February, the Commission obtained an
injunction against the ICO startup Blockvest.