US FTC to hold a workshop about cryptocurrency scams

US Federal Trade Commission to hold a workshop about popular scam schemes in the digital asset market for law enforcement and industry operators on June 25
02 May 2018   570

June 25, 2018 will be the day for the US Federal Trade Commission to speak about cryptocurrency scams during their scheduled workshop “decrypting Cryptocurrency Scams”.

Among attendees will be researchers, members of law enforcement and consumer interest groups, industry operators who have to work with crypto. During the workshop FTC plans to discuss the recent surge in demand fro cryptocurrencies, the scams that accompany it and how to protect customers from such risks.

“As consumer interest in cryptocurrencies like Bitcoin has grown, scammers have reportedly become more active in this area. Reported scams include deceptive investment and business opportunities, bait-and-switch schemes, and deceptively marketed mining machines. The FTC has continued its efforts to educate consumers about cryptocurrencies and hold fraudsters accountable,” the organization wrote in its announcement.

This workshop is a good effort at increasing customer protection from fraud in light of recent illegal activity. Multiple pyramid schemes, pump-and-dump action, plain fraud with impossible returns from negligible investment – market is ripe with all of the schemes and while customers themselves can filter out the most noticeable scams, the companies in the market should be informed about how to protect their clients and what to protect them from. This is the main focus of the announced event, and it's good to see the government taking a proactive stance to shield people in the growing crypto market.

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   346

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.