Ex-SEC Official to Criticize IEO

John Reed Stark, 11 served as the headed the Internet law enforcement department believes IEO is "unregulated crypto-casino fundraising mutations"
07 June 2019   772

John Reed Stark, who served 20 years in the US Securities and Exchange Commission (SEC), 11 of whom he headed Internet Enforcement department, being retired, is closely following the latest trends in the cryptocurrency industry.

In a recent publication for the Law360 portal, Stark decided to crush the phenomenon of initial stock exchange offerings (IEO), calling them "predators" and promising that the SEC would cover this "unregulated crypto-casino fundraising mutations".

They are an enticing medium for fraud, manipulation, insider trading, hacking and a broad range of chicanery. IEOs represent yet another blatant attempt to hijack a similar-sounding acronym — IPO — in an effort to lure investors seeking to get rich quick. However, just like ICOs, the IEO has not a single element in common with the IPO (other than the first and last letters of its acronym).
 

John Stark

Ex Head of Internet Enforcement Office, SEC

Stark is a longtime opponent of cryptocurrency and supports Warren Buffett in his opinion that Bitcoin is "akin to rat poison".

Much of bitcoin’s value, outside of mere speculation, is derived solely from its ability to facilitate criminal activity. Need a fake ID, bottle of opiates, a cache of credit card numbers, or a thousand Social Security numbers? Need a way to collect a ransomware payment? Need to fund terrorist-related activities? Need to hire a hitman? Cryptocurrencies like bitcoin have become the payment of choice for these, and a slew of other, criminal enterprises.
 

John Stark

Ex Head of Internet Enforcement Office, SEC

Some time ago another SEC official had criticize own agency for "smothering ETFs with personalized attention as if they were infants".

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   182

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.