Tezos Co-Founder penaltied by Wall Street Regulator

Tezos co-founder Arthur Breitman is punished with a fine and a trading veto for two years by The Financial Industry Regulatory Authority (FINRA)
20 April 2018   1399

The Wall Street regulatory institution has come to a adjudgement with Breitman after he was indicted of producing false statements about his side venture (Tezos) while he was actually employed at Morgan Stanley. All registered FINRA securities specialists are demanded to report any for-profit activity outside of their stated employment if there is “reasonable expectation of compensation.”

The regulatory activity started from a Reuters article published in October that discovered Breitman, who is filed with FINRA as a French citizen, never disclosed hise work for Tezos while still employed at Morgan Stanley within the years of 2014-2015.

Together with the other proofs published in Reuters` article is a business plan written in 2015 that lists Brietmen as chief executive and makes projections on the potential for the company to be worth as much as 20 billion dollars over 15 years.  They also cited two papers Breitman penned under the pseudonym L.M. Goodman about Tezos, showing that he purposely hid his connection with the firm.

FINRA enclosed that “Breitman did not notify Morgan Stanley at any time that he was engaging in these outside business activities.” The adjudgement conditions of April 18 are that Breitman shun any broker-deals for 2 years and pay a $20,000 fine. Breitman neither accept nor disclaim the indictments.

The settlement with FINRA is unrelated to and has no impact on the launch of the Tezos network. Arthur cooperated fully with FINRA at all times and Arthur is pleased to put this personal matter behind him.
Sarah Lightdale, lawyer of Arthur Breitman

Last July the Tezos foundation increased for $232 million from their initial coin offering to found the blockchain network for smart contracts but still haven’t delivered any of the cryptocurrency to supporters because of infighting and legal problems in and outside of the boardroom.

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   304

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.