This Cryptocurrency Plunged 62% After SEC Files Emergency Lawsuit
The United States Securities and Exchange Commission has filed an emergency lawsuit in a Brooklyn federal court in an attempt to prevent a somewhat popular ICO from spending the money that was raised from the issuance of its cryptocurrency.
News of this emergency filing instantly led to a massive dump for Veritaseum, which raised a total of nearly $15 million from an Initial Coin Offering in mid-2017 and early-2018, and this emergency lawsuit may be emblematic of an imminent crackdown on unregistered securities that were offered through the course of the 2017 and 2018 .
SEC Targets ICO That Attempted to Flout Registration Requirements for Cryptocurrency Offering
The , which was filed on August 12, claims that cryptocurrency company Veriaseum and founder Reginald Middleton fraudulently raised $14.8 million USD while attempting to flout regulatory requirements by characterizing the cryptocurrency (VERI) as things like gift cards and software.
Furthermore, the filing also notes that the defendants knowingly mislead investors about the business venture and offered investors fictitious data about the company’s revenue.