SEC advised ICOs to keep books

Wesley Bricker, SEC Chief Accountant advised ICOs to maintain financial records
13 September 2017   1553

The Chief Accountant of the Securities and Exchange Commission (SEC), Wesley Bricker, warned ICO companies participating of the need to maintain financial records and disclose in it all the necessary details. This is reported by CoinDesk.

This statement was made by the SEC representative during a speech at the AICPA National Conference on Banking and Savings Institutions on September 11 in Washington. In his speech, Bricker touched on various areas of finance, raising also issues of financial reporting that should be taken into account by the organizers of the ICO.

For issuers, questions included:

  • Are there liabilities requiring recognition or disclosure?
  • Are there implications for the provision for income taxes?
  • Are there previously recognized assets that require de-recognition?
  • Are there revenues or expenses requiring recognition or deferral?
  • Is there a transaction with owners, resulting in debt or equity classification and possibly compensation expense?
  • What are the necessary financial statement filing requirements?

An entity involved in initial coin or token offering activities will need to consider the necessary accounting, disclosure and reporting guidance based on the nature of its involvement.
 

Wesley Bricker
Chief Accountant, SEC

Likewise, he advised investors and token owners to ask:

  • Does specialized accounting guidance (such as for investment companies) apply to the holder’s financial statement presentation?
  • What are the characteristics of the coin or token in considering whether, how, and at what value, the transaction should affect the holder's financial statements?
  • What is the nature of the holder's involvement in considering whether the issuer's activities should be consolidated or accounted for under the equity method?

Finally, Briker noted that all these questions are typical. Only the specifics of the specific ICO will determine which reporting requirements are to be met.

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   346

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.