Lawsuit filed against ATB ICO

The plaintiff asserts that the company violated the securities law
28 December 2017   1966

On December 21, a class action was filed against ATBCoin and its founders. This is reported by CoinDesk.

Raymond Balestra filed a class action suit in the Southern District of New York against ATBCoin LLC, Edward Ng (CEO) and Herbert W. Hoover (co-founder). The plaintiff asserts that the company violated the law on securities, since it issued unregistered securities that allow its holders to rely on income in the coins of ATB.

The ATB ICO was a clear offer and sale of securities because, inter alia [among other things], Defendants touted, and Plaintiff and other ATB ICO investors reasonably expected, that the ATB Coins received in exchange for their investments would be worth more than the ETH, BTC, LTC or other currencies invested.

Lawsuit against ATB ICO

The sale of tokens of a fast and low-cost payment system based on the ATB blockchain started on July 12 and ran through July 12, according to the company's blog. According to the plaintiff, in August, ATBCoin launched the second part of the campaign and continued to attract funding even in September.

The plaintiff invested 2.1 ETH on 12 August. How much money was collected during the ICO is not reported, but the prosecution claims that this value is in the range between $ 20,400,000 and $ 24,210,000 in equivalent in BTC, ETH and LTC.

There is no information about this situation on the official chanels and website of the project. ATB Coin support refused to comment this situation in projects Telegram. 

Tezos is another ICO project with lawsuits against it. 

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   166

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.