The court ordered Veritaseum to pay $ 8 million for illegal ICO

The New York District Court ordered the seizure of more than $ 8 million from Veritaseum CEO Reggie Middleton from an unregistered ICO.

Middleton is also required to pay $ 1 million as a civil penalty. The court approved a motion in a securities fraud case that several employees of the company are accused of. The defendants are jointly liable for the payment of $ 7,891,600, which the court considered to be unlawful profit. In addition, Veritaseum employees are required to pay $ 582,535 as interest for the period until the court decision.

According to a court order, defendants are prohibited from participating in any activity related to the offering of digital securities. The case against Middleton was opened in mid-August by the US Securities and Exchange Commission (SEC). SEC claimed that Veritaseum LLC and Veritaseum Inc. raised about $ 14.8 million through an unregistered ICO from the end of 2017 to the beginning of 2018 and demanded that the court freeze the assets of the companies.

In early October, the SEC entered into negotiations with Veritaseum to resolve the claims, after which the hearing was adjourned until November 14th. This situation negatively affected the cost of Veritaseum tokens (VERI), the price of which fell by 37%, according to the Coin360 service.

Recall that this month the SEC also accused Telegram of unregistered sale of tokens. Despite the proceedings with the SEC, TON investors are ready to wait for the launch of the platform and have refused to return the invested funds until the situation with the allegations by the Commission is clarified.