2 cryptocurrency exchanges are taken down by Venezuelan government

Venezuela has shut down 2 cryptocurrency operators as they allowed its clients to convert bolivars into a number of cryptocurrencies and send remittances abroad
29 April 2018   629

The government's Operation Paper Hands that focuses individuals and companies incurring misappropriation and dissemination of flase information on the exchange rate this week has targeted 2 cryptocurrency exchanges: Airtm and RapidCambio. Both provided exchange between the cryprocurrencies and bolivars. Airtm supported the conversion of Zcash, Bitcoin, Bitcoin Cash, Ether, Ripple, Litecoin, Monero, Dogecoin, and Tether. RapidCambio allowed customers to exchange and send remittances using Bitcoin, Ether, Bitcoin Cash, Dash, Litecoin, and Ripple.

These exchanges operate through websites registered abroad as well as Twitter accounts and other social networks. They use international parent bank accounts in the U.S., Chile, Ecuador, and Panama. In those accounts, they received deposits in cash or transfers, and then converted at a high and unreal exchange rate.


Tarek William Saab

Venezuela’s Prosecutor General

RapidCambio has posted a notice on its website stating that it never set or intended to fix market prices and that exchange rates have always been given by the law of supply and demand, as a free market without any imposition.

Unfortunately we are in need to close our operations indefinitely due to the unjust persecution to exchange houses in Venezuela by the National Government.


Rapidcambio statement

Thus, the crackdown affects the operation of the exchanges in Venezuela only.

SEC to Accuse Veritaseum ICO of Fraud

SEC believes that project's tokensale, thru which it raised $14.8M back in 2017-2018 had a signs of scam and company misled the investors
14 August 2019   410

The U.S. Securities and Exchange Commission (SEC) has sued New Yorker  and Veritaseum-related companies that have been caught by the agency in conducting an unregistered ICO with signs of fraud. It is reported by Cointelegraph.

According to documents published on the network, the SEC intends to hold Reggie Middleton accountable and immediately freeze the assets of Veritaseum Inc. and Veritaseum LLC.

The Commission claims that the defendants raised about $ 14.8 million through an initial coin offering (ICO) in 2017 - early 2018. At the same time, many investors were misled, as the company distorted information about the conditions of the token sale and deliberately hid some significant details.

The American regulator claims that the project still has about $ 8 million of illegally raised funds. According to the SEC, these assets must be frozen immediately.

Amid this news, the Veritaseum (VERI) rate has fallen by 70%. Now the coin is trading near the $ 5 mark, although at the beginning of 2018 its rate was approaching $ 500.

Veritaseum was created as a financial p2p platform, involving the movement of capital without traditional intermediaries. Also, VERI was positioned as a utility token for use in consulting services and access to various research works.

In 2017, Veritaseum blockchain startup fell victim to hackers, having lost $ 8.4 million from ICO investors.