Crypto is Fallacy, Bank of Finland Says

Adviser on digitalization and head of the Digital Central Bank under the Ministry of Financial Stability and Statistics of Finland criticized crypto
03 July 2018   876

The Central Bank of Finland issued a document entitled "The Great Illusion of Cryptocurrencies", in which he expressed its attitude to digital currencies. This is reported by Cointelegraph.

The author of the document is Aleksi Grym, adviser on digitalization and head of the Digital Central Bank under the Ministry of Financial Stability and Statistics of Finland.

With the help of this document, Grim tries to convey how "shows how poorly understood the concept of money itself still is today" and how much the Internet and social networks "muddled our sense of fact and fiction".

A representative of the Bank of Finland believes that cryptocurrencies are not real currencies, but only "accounting systems for non-existent assets". As an argument, he cites the fact that technologies such as blockchain are essentially data storage systems. And their use for cryptocurrency "unrelated to the fundamental characteristics of money". The document also contains several citations from other studies, mostly with a negative connotation.

For all intents and purposes, that ledger is a centralised ledger. The fact that there are multiple synchronised copies of it, distributed across a network, is irrelevant, as each one has the same data.

Aleksi Grym

Adviser on Digitalization and Head of the Digital Central Bank process, Financial Stability and Statistics Department

According to the document, the main motive for buying crypto-currencies is criminal actions, a sense of belonging to the community, an attempt to defend themselves against "real or fictional" state oppression, or speculative trade.

In addition, Alexi Grym asks the question: "What is money?". He notes that over time the meaning of this word has changed, but until now, money means a unit for exchange, which can be stored and counted. But the cryptocurrencies, in his opinion, appear "out of thin air".

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   166

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.