CFTC equated tokens to exchange products

The Commodity Futures Trading Commission released the first part of a series of explanatory materials related to ICO tokens
18 October 2017   2056

LabCFTC, fintech-initiative of The Commodity Futures Trading Commission (CFTC), published the first part of a series of explanatory materials, which describes the basics of blockchain technology and some scenarios for its application. This is written by CoinDesk.

In the 20-page document, a special attention was drawn to the section emphasizing that since 2015 the CFTC has maintained an unchanged position relative to bitcoin and other crypto-currencies, classifying them as exchange products.

Separately, the CFTC notes that there is no discrepancy in the position of the SEC on crypto-currencies.

The CFTC looks beyond form and considers the actual substance and purpose of an activity when applying the federal commodities laws and CFTC regulations. Conduct extensive research before giving any money or personal information to a virtual currency platform.
 

CFTC report

Each project will be considered individually, and all facts and circumstances will be taken into account when deciding, says the CFTC.

In addition, the CFTC recalls the need to conduct a thorough study of crypto-exchange platforms before trusting their own funds or personal information.

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   2033

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.