Xunlei faces Class-Action for Concealing ICO

Nasdaq-listed company Xunlei has turned the subject of multiple class-action lawsuits from investors who bought the firm’s digital token, Linktoken
23 April 2018   1523

Xunlei is being accused of disorienting investors in order to hide an initial coin offering (ICO) through which Linktoken was distributed. Chen Lei (the chief executive officer of Xunlei) has denied the indictments that the company misled investors in order to illegally state an ICO in China.

Chen Lei has declared that the Linktoken distribution did not comprise an ICO as the company was not raising any funds through the issuance of the tokens, and due to Linktoken containing  a utility token that is not let to be traded.

In October 2017, Linktoken was started in conjunction with other attempts by Xunlei to reach the blockchain industry. Whilst the distribution of the Linktoken appears to have been the catalyst for many weeks of bullish action, the value of Xunlei’s stock has more than halved since posting 500% gains and setting record highs of $25 USD in November 2017.

By early April the price of Xunlei’s shares had collapsed to approximately $10, causing some U.S.-based investors to seek action against the company for allegations of giving false and/or misleading statements demanding the legitimacy of the company’s cryptocurrency measures between October 2017 and January 2018.

By making a public offering, really you need to use it to raise money. We have never used a coin to raise any money at all, that’s never our intention. We are a small capital company, so our stock price does fluctuate, but I don’t think there’s any basis for the lawsuit because we’re operating in China and it is the Chinese law and regulations that we need to observe. We have been very straight on our business practices – we do not sell tokens. 
Chen Lei, chief executive officer, Xunlei

China’s National Internet Finance Association (NIFA) conducted an investigation into Xunlei’s token distribution, concluding in January the company had dodged regulations through conducting an “initial miner offering.”  

Xunlei’s shares (XNET) are at present trading at $13.46, after retracing from highs of $14 on the 20th of April.

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   174

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.