'Sunken Treasures Backed' ICO to be Suspected of Fraud

Branch of the Shinil Group in Singapore launched the sale of Shinil Gold Coin (SGC) tokens, "secured by drowned treasures" from Dimitry Donskoy ship
08 August 2018   1388

In the office of the South Korean company Shinil Group, which went to the ICO with "tokens, secured by treasures from the sunken ship," were searched. Authorities suspect the company of fraud, The Korea Herald writes.

On July 15, representatives of the Shinil Group published photographs of the cruiser Dmitry Donskoy allegedly discovered by them at the bottom of the Sea of Japan.

'Treasure Ship'
'Treasure Ship'
'Treasure Ship'
'Treasure Ship'
 

They said that the cruiser, which sank in 1905, carried 200 tons of gold worth 130 trillion Korean won ($ 116 billion).

At the same time, a branch of the Shinil Group in Singapore launched the sale of Shinil Gold Coin (SGC) tokens, "secured by drowned treasures." Investors were promised that by the end of 2018 the price of the token will rise from 200 to 10 thousand won.

At the next press conference, the Shinil Group adjusted the value of the treasure to 10 trillion won, although in the official request for seabed research, the estimated value of the treasures was 1.2 billion won.

At the same time, another unnamed company claimed its rights to the cruiser, claiming that it found ship first. On its part, a complaint was filed demanding that criminal proceedings be initiated against Shinil Group, after which the latter was closed.

Currently, the head of the Shinil Group is not allowed to leave the country, another key suspect is wanted.

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   2054

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.