New $1.6B Worth Chinese Blockchain Fund to Launch

Dubbed Xiong'An Global Blockchain Innovation Fund will be supported by the Hangzhou city government
09 April 2018   755

New fund from China has $ 1.6 bilion to invest in startups; 30% of funds backed by a city government. This is reported by Coindesk.

New initiative named Dubbed Xiong'An Global Blockchain Innovation Fund was annouced at the opening ceremony of a new Blockchain Industrial Park in Hangzhou. This Chinese city is a hot to major companies such as Alibaba.

The fund was launched by the Hangzhou-based venture capital firm Tunlan Investment; additionally, more than $400 million comes from the Hangzhou city government. The industrial park itself will act as an incubation center for the startups.

Fund will be powered with skilled workers: 

  • Xu Xiaoping - founder of Zhenfund, a venture capital firm that has invested in blockchain projects such as Stream and Lino - as advisor;
  • Li Xiaolai, a notable blockchain investor and bitcoin tycoon in China, has been appointed a manager of the fund

The new fund shows the Chinese government entities latest effort in taking the lead on blockchain development initiatives in the country.

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   197

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.