US SEC files complaint against these two companies

The US SEC(Securities and Exchange Commission) has filed a complaint at the US District Court. It is against a New York-based man and his two companies, the New York company Veritaseum Inc. and the Delaware-based company Veritaseum LLC.

The Exchange Commission alleges these companies have been illegally running an ICO from 2017 to 2018. Also, they have made material misrepresentations and omissions to investors The companies sold tokens, VERI. The Ethereum blockchain issued these tokens and pegged it to Ether at a 30:1 ratio. The company showed the token as a utility token. According to them, the tokens can be useful in consulting and advisory services and purportedly has unlimited access to research. They had raised approximately $1.8 million from the ICO. Thus, the SEC has requested the district court to freeze the defendants’ related assets in an immediate effect. Also, the commission alleges that there are around $8 million in investor proceeds which are pending from the unregistered ICO.

As per the source, the commission has made a request to the court. It wants no interference with its access to the necessary documents from the defendants. This is because the SEC wants to escrow digital assets via a third party. The defendants might otherwise destroy the documents and files and the commission won’t have any substantial evidence against them.

Last month, the SEC had prosecuted against Canadian startup Kik. The firm had been illegally conducting a $100 million securities trade of digital tokens.