Coinbase interrogated by US CFTC on ETH price crash

Coinbase iterrogated by the U.S. Commodity Futures Trading Commission (CFTC) on Ethereum price crash occurred in June
03 October 2017   2353

Coinbase becomes the object of the attention from the US Futures Trading Commission (CFTC) in connection with the incident happened in June this year, when the price of Ethereum on the GDAX exchange dropped to almost zero for a few moments. That resulted in the loss of funds for some users. 

Back then, the crash was triggered by $12.5 million trade that caused other traders to panic sell and automatic sell orders to initiate. Coinbase compensated traders who were impacted by the flash crash. The company representatives claim that it “fully cooperates with regulators” but they were “unaware of a formal investigation” into the event.

As detailed by cryptocoinsnews.com details referring to bloomberg.com, CFTC requests the information on the role that marginal trading, introduced at GDAX in March to attract institutional investors, could play in the event. Through margin trading, large-scale traders can use borrowed funds to place high-risk bets on the future value of the asset, in this case, Ethereum.

It is noteworthy, that the CFTC investigation into the Ethereum price crash on GDAX is yet another sign of the increased focus U.S. regulators are placing on the cryptocurrency markets.

Ethereum price chart on coinmarketcap.com
Ethereum price chart on coinmarketcap.com

Meanwhile, at the time of writing, Ethereum price is about $296.79, its market capitalization is $28,172,251,304.

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   174

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.