Silk Road founder drops claim to millions of dollars

Ross Ulbricht, Silk Road founder, drops claim to millions of dollars raised on Bitcoin auctions
03 October 2017   1582

Ross Ulbricht, the founder of the illegal marketplace Silk Road, drops claim to millions of dollars raised on Bitcoin auctions, that were previously seized by US law enforcement.

Ross Ulbricht
Ross Ulbricht photographed by Julia Vie

Thus, accroding to coindesk.com, on September 29th, US District Judge Katherine Forrest issued an order forfeiting over $48 million to the US government. Those funds were gained as the US Marshals Service auctioned off more than 144,000 Bitcoins confiscated during the crackdown on the Silk Road.

These $48 million will count toward the more than $180 million in monetary judgments Ross Ulbricht was ordered to pay at sentencing.

Sentenced to life imprisonment for the distribution of drugs and hacker attacks, Ross Ulbricht previously claimed his rights to the confiscated funds. However, now the man has changed his mind, the motives behind which remain unclear. 

In total, the value of the Bitcoins seized from Silk Road accounts was estimated at $122 million. Today this amount would be more than $620 million.

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.