SEС suspects two ICOs in fraud

REcoin and DRC World, led by Maxim Zaslavsky, are suspected in fraud by Securities and Exchange Commision
30 September 2017   3184

The Securities and Exchange Commission (SEC) brought charges of fraud against ICO start-ups for the first time. 

According to the SEC press release, the activities of the Diamond Reserve Club World (DRC World) and the REcoin Group Foundation, run by businessman Maxim Zaslavsky, revealed signs of fraudulent schemes, as well as violations of securities laws.

According to the SEC, during the two ICO-campaigns Zaslavsky sold crypto-loans that were not secured by assets. At the same time, according to the representatives of the Commission, the entrepreneur assured REcoin participants that the funds are being attracted "for investing in real estate."

Regarding the DRC World project, Zaslavsky promised investors that the funds raised during ICO will be invested in diamonds and provide crowdsale participants will receive discounts on their products. However, according to the SEC, the entrepreneur did not show any business activity in these areas.

Among other things, Maxim Zaslavsky assured his investors that he is working with a "team of lawyers, professionals, brokers and accountants." According to the SEC, Zaslavsky did not engage in hiring personnel.

Also, the businessman said that during the ICO project REcoin attracted "from 2 to 4 million dollars", but, according to the SEC, only $ 300 thousand was collected.

Returning to another project of Maxim Zaslavsky, DRC World, it is worth noting that it was created already after the Commission intervened in the activities of REcoin.

Investors should be wary of companies touting ICOs as a way to generate outsized returns. As alleged in our complaint, Zaslavskiy lured investors with false promises of sizeable returns from novel technology.
 

Andrew M. Calamari
Director, SEC’s New York Regional Office

According to the urgent decision of the federal court of Brooklyn, both companies and all assets of Maxim Zaslavsky were frozen. Currently, the SEC requires companies to pay fines, as well as return all funds raised. In addition, the Commission will take measures to prohibit Zaslavsky to conduct ICO-campaigns in the future.

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.