Modern Tech to Steal $ 660M From Investors, Media Reports

Authorities of Vietnam started an investigation into Modern Tech's activity
12 April 2018   1703

The Vietnamese authorities have launched an investigation into the company Modern Tech, which is suspected of fraud and misappropriation of 32 thousand ICO-investors in the amount of 15 trillion dong ($ 660 million). This is reported by Nikkei Asian Review.

The reaction of the authorities was followed after the ICO participants held a mass action in Ho Chi Minh City in front of the headquarters of Modern Tech, demanding compensation for their funds.

Victims of Modern Tech at Ho Chi Minh Street Action
Victims of Modern Tech at Ho Chi Minh Street Action

Modern Tech positioned itself as an authorized Vietnamese representative of the projects Ifan and Pincoin, responsible for conducting two ICO on their behalf. The first project is registered in Singapore, and Pincoin is in Dubai. However, as indicated by the local media, they are followed by seven Vietnamese citizens.

Modern Tech promised investors of these projects an extremely high return on investment - more than 570% per annum, comparing it with "miserable" 16% of income from bank deposits and 17% of investments in real estate. In addition, for attracting new participants, "investors" were offered an additional remuneration of 8%.

Ifan was positioned as the "most advanced social network" for celebrities and artists, which allowed users to communicate with their idols, as well as buy albums, tickets and various goods for tokens.

Pincoin was presented as an "investment opportunity", promising 40% of the monthly profit.

The investor's anxiety increased significantly after the company started paying commissions in tokens, rather than in fiat money. At the same time, there was no way to cash out these tokens or exchange them for another crypto currency.

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   1985

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.