This Cryptocurrency Plunges 75% Over SEC Security View – Is Ripples XRP Next?
This Cryptocurrency Plunges 75% Over SEC Security View – Is Ripples XRP Next?Image Source: Shutterstock
The SEC has filed an emergency lawsuit against Reginald Middleton, Verisatium Inc., and Verisatium LLC. to prevent them from spending the money raised from their ICO. The SEC has claimed that the entire ICO which raised about $14.8 million was a scam.
The people behind VERI tokens created a facade of massive proportions, while no real project or business was backing its value. The SEC filing recorded,
Defendants knowingly misled investors about their prior business venture and the use of offering proceeds
The court has granted a temporary restraining order to freeze the multiple bank accounts and Ethereum wallets. Reportedly, $8 million worth in assets from the ICO is still left in the firm.
In reality, VERI are securities, as the substance of the Offering shows, including, forexample, in Middletons statements that todays roughly $3.30 purchase of VERI tokens could yield ($3.30 x 5,000%) = $165 and that purchase of Veritas goes directly to fund the business.
These statements are presented as proof that Reginald ran a firm and sold company securities as an ICO. Moreover, the project and the revenue model behind his claims were false as well. The defendants also exaggerated their amount raised in the ICO to $35 million to mislead the investors.
The SEC has filed a detailed case listing all the claims made by Middleton and by portals from Verisatium.
Verisatium [VERI] plummeted from $16 to $3.77, losing 76.5% of its during the last day as SEC put the hammer on the unregistered ICO.
VERI/USD Chart on Coinmarketcap
Ever since its release, the volatility in VERI has been extreme. The cryptocurrency reached an All-Time High of $538. Nevertheless, currently, it is trading at around $6.
The SEC claims that Reginald Middleton and Verisatium created a huge illusion on false claims to drive up the price of their unregistered security.
Investors File Case Against Ripple for Misleading Investors
Investors in XRP has filed a similar complaint in Californias Federal Court against Ripple Inc. Investor Bradley Sostack has been named the lead plaintiff of the filling. While Susman Godfrey and Tayler-Copeland Law are the co-lead counsel on the case.
They have filed a class-action suit on Ripple which if accepted by the court would entitle them to represent all XRP investors, who according to them, were misled by Ripple.
Ripple Class Action Lawsuit Complaint filling (Read full story on Coingape