SEC Requests Freeze on Assets in Connection With Alleged $15M ICO Fraud
Max Boddy's original article for cointelegraph.com reduced by 78%
The United States Securities and Exchange Commission has filed a complaint against a New York-based man and two of his companies. The SEC alleges that these entities conducted a fraudulent and unregistered ICO from late 2017 to 2018, and is requesting that a U.S. District Court issue an emergency freeze on the defendants' related assets.
Hindenburg Research shared the SEC's filing for a jury trial in a post on Aug. 12. According to the document, the commission is formally filing a complaint against Reginald Middleton, the New York company Veritaseum Inc.
and the Delaware-based company Veritaseum LLC.Prayer for relief, escrow The SEC says that the defendants raised approximately $14.8 million in an ICO from late 2017 to early 2018 and alleges that material misrepresentations and omissions were made to investors. Further, the SEC believes there are around $8 million in investor proceeds remaining from this ICO and are requesting an immediate prayer for relief in order to freeze the defendants' assets. The commission is also requesting that the District Court provide an order to prevent the defendants from interfering with the SEC's access to relevant documentation - for example, by destroying it - allow it take expedited discovery and escrow digital assets via a third party, among other requests.
SEC in the courtroomAs previously reported by Cointelegraph, the SEC has been involved in an ongoing legal battle with Kik Interactive over its Kin token offering.
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