Blockchain LLC to Acquire Slock.it, The DAO Creators

Due critical vulnerability in a smart contract, a significant share of the funds raised during $165M worth DAO ICO was stolen
04 June 2019   595

The Nevada-based incubation and investment firm Blockchains announced the purchase of German blockchain-startup Slock.it, which was at the very beginning of Ethereum, and was also involved in the infamous project The DAO.

This is an exciting acquisition for Blockchains. Slock.it’s team of nearly three dozen experienced developers and professionals will allow Blockchains to significantly fast-track its product roadmap and enhance its collaboration efforts.
 

David Bern

President, Blockchains LLC

In a statement, Blockchains said that the company was primarily interested in the Incubed project being developed by Slock.it, which aims to ensure the joint participation of people and machines on the Internet of things through the Ethereum blockchain.

As a result of the transaction, companies will combine resources and knowledge, which they hope will help them solve problems in existing IoT systems.

Slock.it’s co-founders, Christophe and Simon Yentch, will take the Blockchains chairs as vice president of technology and director of blockchain development, respectively.

Also in the coming months, the company plans to release a set of tools for developers of Ethereum.

In March 2016, Slock.it announced the launch of its own decentralized autonomous organization (DAO) as a new model of corporate finance and management. The project was named The DAO and raised about $ 165 million through a crowdsale, but as a result of a critical vulnerability in a smart contract, a significant share of the funds was stolen.

The developers of Ethereum subsequently made a controversial decision to hold a hard forks network, after which the Ethereum Classic appeared.

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   1850

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.