Listing Website Suspected For $0.5B Laundering in Crypto

At the moment, US DOJ seized Backpage. com and fully stopped its activity
11 April 2018   549

In the US, operators of the Backpage website, which was used to advertise sexual services, were accused of organizing and abetting prostitution, as well as laundering $ 500 million illegally obtained, including using crypto-currencies. In 2015, the site began accepting payments through the crypto-exchange Coinbase and Kraken, as well as payment instruments GoCoin, Paxful and Crypto Capital. This is reported by Cointelegraph.

Backpage Website
Backpage Website

By laundering the illegal gains of an enterprise, Backpage perpetuated the exploitation of victims and continued to finance their business.
 

Guy Cottrell

Chief Inspector, Post

The indictment states that the defendants “converted customer payments into and out of cryptocurrency” in order to hide their crime and evade law enforcement. But beyond the indictment, the crypto trail goes further, involving not only the defendants, but the sex workers who used the online hub as well.

At the moment, law enforcement agencies have stopped the operation of the web resource.

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   223

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.