South Korea starts inspections of Bitcoin exchanges

South Korea’s Ministry of Science and ICT and Korea Communications Commission are going to check the Korean Bitcoin exchanges
28 September 2017   1004

The Korea Communications Commission (KCC) and the Ministry of Science, Information and Communication Technologies announced joint inspections of companies and exchanges that conduct transactions with cryptocurrency. This is reported by Bitcoin dot com.

KCC plans to check the exchanges for compliance with technical and administrative guarantees for the security of personal information and intends to severely suppress any violations identified.

The Korea Communications Commission (KCC) plans to conduct on-the-spot checks on the implementation of technical and administrative safeguards for personal information pursuant to the Act on the Promotion of Information and Communication Network Utilization and Information Protection, and to strictly rectify any violations.
 

ZdNet Korea

Attention of KKC to cryptocurrency organizations can be caused by the increased cases of digital wallets and hacker attacks that lead to the leakage of personal information. 

This check is due to the increase in user damages due to subsequent hacking accidents involving virtual wallet hacking and personal information leakage. The government plans to prevent the occurrence of similar damages and to provide an environment for safe service utilization through inspection of companies handling virtual currencies.
 

The Korea Herald 

 

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   223

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.