Japanese Bank shares dropped on Investment Scheme Crash

The failure of an investment company has caused a probe into lending practices at one of Japan’s most prosperous regional banks
19 April 2018   603

Japanese firm which is collapsed at present, recently convinced hundreds of salarymen to invest almost $1bn in ultra-dime “shared house” developments for single women in Tokyo. These events led to a probe into lending practices at one of Japan’s most prosperous regional banks.

Suruga became famous by lending to individuals who cannot borrow elsewhere in the banking sector and boasts interest margins more than twice that of other regional banks in Japan. The bank is also well-known known in a crypto sphere - as one of the partners of the blockchain company Ripple (California, USA).

On Tuesday shares in Suruga sank more than on 19 per cent. The drop deepened an investigation into the bank and an associated property company. A lawyer representing a group of investors devastated by the fiasco of one of the housing schemes also confirmed that one man had made suicide. The Suruga crisis focuses on the recent phenomenon of “share house” loans. Investors were drawn in by suggestions of constant rental income by the property company.

One of the operators who suggested those inducements, Smart Days, launched a flow of women-only share houses called Kabocha no Basha (Pumpkin Carriage), which managed to trap about 750 investors putting in about $1bn. The FSA, claimed people close to the agency, was investigating whether Smart Days and Suruga let less creditworthy investors to participate in the scheme by heavily exaggerating the size of their bank balances.

Smart Days said it was running its own probe about those statements. Suruga said they were informed of the fact that documents had been forged and that they were having their own investigation into the matter. In January, Smart Days told many investors that it was not able to pay at all. In early April, in order to seek bankruptcy protection, it made a situation in which many investors were unable to make loan payments to Suruga.

So, Suruga does not only face regulatory sanctions from the FSA following its investigation, but also may soon confront the equivalent of a class action brought by investors who demand their loans should be written off. The bank did not mention on the prospect of legal action.

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   174

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.