Texas intends to suspend the USI-Tech Limited

Bitcoin investment firm from Dubai is suspected in illegal promotion of bitcoin investment products
22 December 2017   1454

Texas' financial watchdog have obtained a court order to suspend the company, which is accused of illegal promotion of bitcoin investment products in the state, reports CoinDesk.

According to the report, the Securities Board of the State of Texas revealed that the USI-Tech Limited, based in Dubai, sells investment contracts on the territory of "dozens of Texas cities" through social networks, websites and advertising on various sites, including Craigslist. Also two representatives of the company in the US are named: Clifford Thomas from Maryland and Michael Rivera from California.

Judging by the presentation, USI specializes in the sale of software and equipment for mining and trading. The document also provides the stated statistics of how many potential investors will be able to earn on commissions depending on the number of "referrals".

According to the Texas regulator, the company promises a stable daily profit, reminiscent of high-yield investment plans. Also, the firm encourages potential investors to agitate to invest other people's money in order to profit from it.

The agents' websites claim the mining investment 'derives its value from [USI-Tech's] non-exclusive interest in a series of bitcoin mining contracts.' They promise a daily return of 1%. The USI-Tech website says its bitcoin platform “consistently provides returns of up to 150% per year." The returns do not depend on the value of bitcoin, according to the company. In addition to violating registration requirements, USI-Tech and the sales agents are violating State Securities Board rules by failing to disclose information investors would need to make an informed decision about whether to invest.

Securities Board 

The persons indicated in the court order are accused of violating the standards for registering securities of the state of Texas and failing to provide proper information about the risks associated with the mining of bitcoin.

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   166

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.