Crypto Venture Firms to Hold Meeting with SEC

Andreessen Horowitz and Union Square Ventures discussed with SEC the possibility of excluding tokens from the regulator's supervisory area
20 April 2018   489

The largest investment companies in the cryptocurrency sector, Andreessen Horowitz and Union Square Ventures, held a closed meeting with representatives of the Securities and Exchange Commission of the United States, during which they discussed the possibility of excluding crypto-tokens from the regulator's supervisory area. This is reported by WSJ.

The companies allegedly said that regulation could have a negative impact on innovations in the blockchain sector, and cryptocurrency tokens are not investments and, accordingly, securities. Instead, they said, tokens should be viewed as a tool to gain access to networks and services on the blockchain, or, in other words, consider "utility-tokens".

The participants of the meeting, however, do not object if the SEC intervenes in case of fraud detection.

According to sources of the publication, SEC representatives questioned whether their department could provide an exception of this magnitude.

They admitted that the SEC may be more supportive of issuing separate exceptions if the companies agree to limit the participation of individual investors in the ICO and prohibit the reselling of the tokens to third parties at a higher price.

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   346

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.