SEC v. Veritaseu

The SEC sues Veritaseum entities and their founder for conducting a fraudulent and unregistered ICO. The SEC alleges that Veritaseum raised approximately $14.8 million from hundreds of investors through the sale of VERI tokens by making false and misleading statements about the potential profitability and utility of the tokens, claiming they were backed by gold and other valuable assets, and falsely asserting that the tokens were not subject to securities laws. Additionally, the SEC alleged that Middleton manipulated the price and trading volume of VERI tokens on secondary markets.

The SEC charged Middleton and his companies with violating antifraud and registration provisions of federal securities laws. Middleton and Veritaseum agreed to pay over $9.5 million in disgorgement, prejudgment interest, and penalties. Middleton was also permanently barred from offering digital securities and serving as an officer or director of a public company.

1:19-cv-04625