PBoC Director claims Blockchains Need Centralization

China’s digital currency director declared that superfluous decentralization is a fatal omission that damages for Bitcoin, Ethereum and other public blockchains
27 April 2018   2179

Yao Qian, the head of the People’s Bank of China (PBoC) digital currency research institute affirms that is not possible to function in decentralized, informal blockchain governance on a large scale. He said that the resolution of this problem for the blockchain is just to have a central governor.

In fact, by relaxing the decentralization constraint, many problems can be solved. For example, in a multi-center system such as a coalition chain, upgrading the blockchain bottom by shutting down the system, or emergency intervention, rolling back data, etc., are available means when necessary, and these methods help to control risks and correct mistakes. For regular code upgrades, controllable smart contract replacements can be achieved by separating code and data and combining multi-layer smart contract structures.
Yao Qian
Director, PBoC digital currency research institute

Evidently, Yao referred the DAO hack and the consequent divorce between Ethereum and Ethereum Classic. According to Yao’s suggested structure, the PBoC would have the ability to pause or even shutter the system, roll back transactions and other data, as well as push software upgrades without the need for community consensus.

Yao is not the first authority from a Chinese regulatory agency to insist on the idea  that central banks should accept distributed ledger technology (DLT) but at the same time to support a centralized governance structure.

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.