Companies to sue Internet Giants over Banned Crypto Ads

Russian, Chinese and Korean cryptocurrency associations are going to file a class action against internet organizations banning crypto ads
28 March 2018   1849

The lawsuit will dispute the limitations imposed by Facebook, Google, Twitter and Yandex. An arrangement to take the matter to court in the US has been achieved at a crypto conference in Moscow.

The newly established Eurasian Blockchain Association (EBA) will file the lawsuit in a US jurisdiction in May. Among the participants there are representatives of the Russian Cryptocurrency and Blockchain Association (RACIB), the Korea Venture Business Association (KOVA) and the Chinese Association of Cryptocurrency Investors (LBTC). Each side has signed the agreement to create EBA during the BlockchainRF-2018 congress in Moscow (27-28 March). Also they are going to found a special cryptofund that can be supported through donations.

Well-known social network Facebook and the biggest search engine Google prohibited crypto ads in January and in March respectively. Russian media have declared about a resemble decision by the largest in the country search engine Yandex. This measure has not been officially confirmed by the company.

The messages that Twitter is managed to set restrictions appeared about 10 days ago. The microblogging platform stated the policy change. Another media platform, Snapchat, has also forboden the advertisements of ICOs.

Yuri Pripachkin (RACIB`s president) considers that the situation looks like a cartel collusion. “We think these four companies are using their monopoly power and have colluded to manipulate the market”, - RACIB`s president claimed (quoted by TASS and Interfax). Also he accentuated that the bans caused substantial market drops during the last months.

Last week RAKIB forewarned that the Russian economy may lose over 1.5 billion USD from ICOs conducted by Russians in more favorable jurisdictions. Coin suggestions with Russian participation total for 10 % of the global ICO market. About $310 million dollars have been attracted by Russian projects in 2017 (according to a report by the President Vladimir Putin).

The State Duma, the lower house of Russia’s parliament has introduce 2 laws to legalize blockchain technologies, cryptocurrencies, mining and coin offerings. The head of the parliamentary Financial Market Committee Anatoliy Aksakov claimed that these new orders will be adopted in June or July, 2018.

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.