Etherparty ICO falls prey to cyber attack

Etherparty ICO falls prey to cyber attack, some funds misdirected to the attacker
06 October 2017   2631

Blockchain startup Etherparty fell prey a cyber attack, some contributors' funds were misdirected to the attacker’s address.

Thus, during the Etherparty's ICO, an attacker successfully injected a fraudulent wallet address into the Etherparty ICO website. As detailed in the official blog, the team spotted the breach almost immediately, and within 15 minutes the website had been taken offline. The website remained down for about 90 minutes while the team rebuilt it and moved it to a new server.

Etherparty claims that it would distribute tokens to any contributors who sent funds to the fraudulent wallet address prior to the website takedown.

Our team has been consistently and successfully thwarting potential security issues to avoid further escalation. However, we do acknowledge and apologize for the temporary disruption to our otherwise successful launch day. Etherparty is eager and committed to compensating all affected contributors for the inconvenience.
 

Lisa Cheng
Founder of Etherparty

Despite the incident, the startup has raised more than $28 million worth of Ether, Bitcoin, and USD so far.

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.