Massive Crypto Capital Outflow Expected by Tom Lee

Head researcher of Fundstrat reports that US citizens owe $25B in taxes for their crypto holdings, and the last tax day is 17th of April
06 April 2018   588

Analyst of Fundstrat Tom Lee expects that the "massive outflow" of capital from the cryptomarket can accelerate on the eve of the last day of paying taxes in the US. This is reported by CNBC.

American traders owe their state about $ 25 billion in taxes from the income they received as a result of operations with cryptocurrencies, Lee reports. In addition, the cryptocurrency exchange should also pay off the state, some of which may also try to liquidate their assets in the coming days.

This is a massive outflow from crypto to USD and historical estimates are each $1 of USD outflow is $20-$25 impact on crypto market value. Additionally, we believe there is selling pressure by crypto exchanges who are subject to income tax in U.S. jurisdictions. Many exchanges have net income in 2017 [of more than] $1 billion and keep working capital in [bitcoin]/[ethereum], not USD — hence, to meet these tax liabilities, are selling BTC/ETH.
 

Tom Lee

Head of research at, Fundstrat

The crypto market experienced a 50% drop in the first quarter of 2018, and for Bitcoin and Ethereum it turned out to be the most unsuccessful first quarter in history.

Regulatory headline risk is still substantial. And sentiment remains awful, as measured by our bitcoin misery index, which is still reading misery. Ultimately, we expect bitcoin to find footing after April [17], tax day.
 

Tom Lee

Head of research at, Fundstrat

Earlier, Lee assumed that the bitcoin rate would reach $ 91,000 by March 2020, basing his forecast on market indicators after periods of decline in the past. 

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.