SEC Requires Freezing Assets of Veritaseum ICO Organizers

The U.S. Securities and Exchange Commission (SEC) filed a complaint against a New Yorker and two of his companies on suspicion of conducting an unregistered ICO from late 2017 to 2018.

The commission requires the court to grant permission to urgently freeze the assets of the defendants. According to the document, the SEC officially filed a complaint against Reginald Middleton, New York-based Veritaseum Inc, and Delaware-based Veritaseum LLC.

The SEC claims that the defendants raised about $ 14.8 million through an ICO from the end of 2017 to the beginning of 2018 and claims that investors suffered from material misrepresentations during this campaign. In addition, the SEC believes that according to the results of this ICO, about $ 8 million was left in the form of investor income, and the Commission demands that the assets of the accused be frozen immediately.

The commission also requests that the court order it to prevent defendants from interfering with the SEC’s access to relevant documentation, for example, by destroying it. According to the application, companies sold VERI tokens, which were issued on the Ethereum blockchain and tied to ETH in a 30: 1 ratio.

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Reportedly, the defendants touted VERI as an instrumental token and stated that it could be exchanged for advisory services and supposedly unlimited access to research.

This is not the first time that the SEC has been trying to hold ICO unscrupulous projects accountable. In February, the Commission achieved
injunction against startup ICO Blockvest.