SEC files emergency lawsuit against Veritaseum to stop spending millions of dollars in ICO money
August 13, 2019, 10:23AM EDT · 2 min read
- The SEC has filed an emergency lawsuit in federal court to prevent Veritaseum from spending $8 million raised in an ICO
- The SEC alleges that Veritaseum knowingly misled investors about prior business success and investor demand for the tokens
Cognizant of the federal securities laws’ application to VERI, Defendants so-called “utility” token, claiming that the VERI tokens’ supposed uses were variously as (1) a “prepaid fee” that could be exchanged for “consulting and advisory services” and used to buy “unlimited access to research,” (2) a “universal key to gain access to Veritaseum P2P OTC Direct Contracts,” and (3) a means to access “Veritaseum Legacy Asset Exposure Pools.”
The complaint alleges that Defendants engaged in securities fraud under the Securities Act and the Exchange Act, the unregistered sale and offer of securities under the Securities act, and market manipulation under the Exchange Act.
At the time of writing, the price of VERI tokens is down more than 60%.
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