Australian Regulator to Come to Grips with ICO

The Australian Securities & Investments Commission looks to update guidance on companies considering raising funds by issuing digital coins or tokens
26 April 2018   643

Initial coin offerings (ICO) will be a “key focus” for Australia’s corporate watchdog as it looks to update guidance on companies considering raising funds by issuing digital coins or tokens, a top official said on Thursday.

The Australian Securities & Investments Commission intends to update guidance on companies considering raising funds by issuing digital coins or tokens, stating that Initial coin offerings (ICO) will be a “key focus”, Commissioner John Price said on Thursday. The Commission will expand the scope of its guidance in coming weeks to include more questions and details on ICOs.

We will highlight that Australian corporate and consumer law might apply – even if the ICO is created and offered from overseas. This is an important point given the international nature of this sector. I think you can expect a strong focus from us in this area.

 

John Price 

Commissioner, The Australian Securities & Investments Commission 

The Commission will also highlight information on how Australian law prohibiting misleading or deceptive conduct will apply in this space.

The ICO market is still small in Australia but Price said there was a “certain level of opportunism... because it is seen as an easy, low regulation, low-cost option which could lead to immature businesses coming to market.”

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   223

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.