India Warns to Stay Away from Cryptocurrency

RBI has clarified that it has not given any licence to any company to operate with cryptocurrency 
29 December 2017   1774

The Reserve Bank of India issued a statement on Friday comparing cryptocurrencies to ponzi scheme and warned people to stay away from virtual currencies such as bitcoin. RBI added that cryptocurrencies are not backed by regulations hence there is a real and heightened risk of investment

There has been a phenomenal increase in recent times in the price of cryptocurrencies including Bitcoin, in India and globally. Cryptocurrencies don’t have any intrinsic value and are not backed by any kind of assets. The price of Bitcoin and other cryptocurrencies therefore is entirely a matter of mere speculation resulting in spurt and volatility in their prices.

 

Arun Jaitley

Finance Minister of India

The Minister also said that transactions of cryptocurrencies are encrypted and they are also likely being used to carry out illegal activities, such as, terror funding, smuggling, drug trafficking and other money-laundering Acts.

RBI has clarified that it has not given any licence to any company to operate such schemes or deal with bitcoin or any cryptocurrency. The government also noted it that cryptocurrency is not legal tender and it does not have any regulatory permission or protection in India.

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   276

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.