US Securities and Exchange Commission accused VERI token of fraud and manipulation of the market

According to the official website of the SEC, the SEC filed a complaint against Reginald "Reggie" Middleton, who called himself "Financial Master", and two companies he controlled, Veritaseum, Inc. and Veritaseum, LLC, alleging that the two companies were suspected of fraudulent investors. Selling digital securities and manipulating the markets for these securities. On August 12, the court entered an emergency freeze. At least $8 million was retained in the $14.8 million raised by the two defendants through the issuance of digital securities in 2017 and 2018. The commission filed a lawsuit in federal court in Brooklyn, New York, accusing the defendant of selling securities on the Internet known as "VERI" tokens, enticing retail investors to invest based on multiple material misstatements and omissions. In addition, the defendant allegedly deliberately misled investors about their previous commercial risks and the use of distribution proceeds, boasting that investors' demand for VERI was too large (but purely fictitious) and claimed that there was a product that could not exist in the absence of such products. Generate income. The indictment further alleges that Middleton manipulated the price of VERI tokens traded on an unregistered digital asset platform. The indictment also stated that Middleton recently transferred a large amount of investor assets and then transferred some of the assets to Middleton's personal account.