TL;DR: A day after a court froze $8 million in assets allegedly connected to the Veritaseum initial coin offering (ICO), the Securities and Exchange Commission (SEC) “announced fraud charges against” the company’s head, Reggie Middleton.
SEC Announces Fraud Charges Against Reggie Middleton
The SEC accused Middleton of being in control of an ICO that “allegedly engaged in a fraudulent scheme to sell digital securities to investors and to manipulate the market for those securities.” This comes after a court filing successfully froze more than half of the “$14.8 million the defendants raised in 2017 and 2018 in an offering of digital securities,” the agency explained.
The financial regulator claims Middleton “marketed and sold securities called ‘VERI’ tokens on the internet, inducing retail investors to invest based on multiple material misrepresentations and omissions.” The SEC believes he scammed investors by falsely touting past projects’ successes, faked demand for the token, and lied about having a product at all.
“The complaint further alleges,” the SEC continued, “that Middleton manipulated the price of the VERI tokens trading on an unregistered digital asset platform,” insisting “Middleton recently moved a significant amount of investor assets and then dissipated a portion of those assets, transferring them to Middleton’s personal account.”
Reggie Middleton is being charged with federal securities violations and manipulative trading, and the agency is seeking “permanent injunctions, disgorgement plus interest and penalties, and a bar from offering digital securities.” They also want him barred from holding positions in a company as an officer or director.
DISCLOSURE: The author holds cryptocurrency as part of his financial portfolio, including BCH.
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