An Emergency lawsuit has been filed against Veritaseum (VERI). Yes, you have heard it right the United States Security and Exchange Commission (SEC) has filed an emergency lawsuit in a Brooklyn federal court against Veritaseum (VERI) claiming that the company and its founder and CEO Reggie Middleton have raised $14.8 million United States dollar (USD) in an illicit transaction that has turned out to be a fraud and there was a disregard for the regulatory requirements in this transactions.
Veritaseum (VERI) may have earned around $15 Million United States dollar (USD) from an initial coin offering and this may be an unregistered regulation of the cryptocurrency. The emergency lawsuit is for the crackdown in the way in which Veritaseum (VERI) has made this amount.
At the time of writing this article Veritaseum (VERI) was trading at $5.28 against the United States dollar (USD) and the coin was showing a positive and upward growth of 16.15 percent. The market cap of the coin was $11,344,279 United States dollar (USD) and the trading volume of the coin was $606,731 United States dollar (USD).
The following is an excerpt from the lawsuit filed “Defendants knowingly misled investors about their prior business venture and the use of offering proceeds; touted outsized—but fictitious—investor demand for VERI; and claimed to have a product ready to generate millions of dollars of revenue, when no such product existed”
The United States Security and exchange Commission (SEC) is further concerned that Veritaseum (VERI) is manipulating with its digital currency in order to become more attractive to crypto traders.
The coin was trading at as high as around $15 but this emergency lawsuit has given a huge blow to the coin and has caused massive damage to the digital currency. Let us see how the coin plays out in the days to come.