Facebook May Abandon Libra Due to Watchdog Pressure

Social network believes that one of the main obstacles to launching a project is legal uncertainty
30 July 2019   372

The largest social network Facebook has announced that the launch of the Libra digital currency project may be canceled due to significant pressure from regulators. It is reported by The Block, with reference to the company's statements prepared for the US Securities and Exchange Commission (SEC).

There can be no assurance that Libra or our associated products and services will be made available in a timely manner, or at all.

Facebook Q2 Report Filing to SEC

Facebook is sure that one of the main obstacles to launching a project is legal uncertainty. The situation is aggravated by the alertness of regulators in various countries, which may cause a delay or even prevent Libra from launching.

In addition, representatives of the company noted that they do not have significant experience with cryptocurrencies and blockchain technology, which may adversely affect the ability to create in the market relevant products.

We will also incur increased costs in connection with our participation in the Libra Association and the development and marketing of associated products and services, and our investments may not be successful. Any of these events could adversely affect our business, reputation, or financial results.

Facebook Team

Facebook CEO Mark Zuckerberg said earlier that his company is not abandoning plans to launch Libra’s digital currency and will spend “as much time as it takes” to win over regulators.

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   304

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.