US SEC Goes After Veritaseum (VERI) for Abused ICO Funds

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The US Securities and Exchange Commission opened an emergency lawsuit against the Veritaseum (VERI) project and against the co-founder Reggie Middleton. The lawsuit aims to curb the spending of the funds raised during the ICO.The lawsuit aims to freeze the project’s assets, including digital asset wallets, in an unprecedented form of direct control over an ICO. The SEC will also seek to freeze other funds and accounts and prevent the destruction of documents.Veritaseum raised the equivalent of $11 million in May 2017, during the peak of the ICO season. The project aimed to build a peer-to-peer payment network to compete with more traditional coins. Later, Veritaseum lost the spotlight and is currently only traded on niche exchanges. But co-founder Middleton was not shy about a lifestyle of luxury and leisure, raising red flags about the project’s future.The distribution of Ethereum (ETH) raised during an ICO is absolutely unregulated. Projects have…

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