Massachusetts to Halt 5 ICOs

18moons, Across Platforms, Mattervest, Pink Ribbon and Sparkco are engaged in the distribution of unregistered securities, Massachusetts authorities belive
28 March 2018   1481

The Massachusetts state authorities decided to suspend five ICOs, because they believe that their organizers are engaged in the distribution of unregistered securities. This is reported by CoinDesk.

The Secretary of Massachusetts William Galvin ordered the organizers of ICO 18moons, Across Platforms, Mattervest, Pink Ribbon and Sparkco to suspend the fundraising after studying each of the campaigns.

Officials found that these campaigns were conducted in violation of the "General Law" of the state, according to which shares, bonds and investment contracts that guarantee profitability are recognized as securities. These five ICOs were identified during a larger state market inspection conducted by the state.

The organizers of the above mentioned ICOs are required to return the money to investors within 30 days. Companies are given another 45 days for direct transfer of funds, after investors are notified of ongoing activities.

According to the order, startups must provide detailed accountability after settlement with investors.

In addition, their organizers must permanently abandon the sale of unregistered securities in the state. At the same time, they are invited to go through official registration and distribute securities on legal grounds.

It is noteworthy that the regulators decided to abandon further investigation until the said ICOs return money to investors. However, if they refuse to comply with the demands of the authorities, the case will be referred to law enforcement agencies that "can take appropriate measures."

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.