Veritaseum agrees to pay back $8 million to ICO investors as part of SEC settlement
Veritaseum and its CEO are also permanently barred from conducting future offerings of digital securities.
Reggie Middleton, the CEO of blockchain company Veritaseum, yesterday agreed to return over $8 million raised in Veritaseum’s ICO to investors, and pay a further $1 million to the state as part of a settlement with the SEC, according to court documents produced by the New York Eastern District Court.
The settlement with the SEC also “permanently bars” Middleton and Veritaseum from offering digital securities.
The SEC argued that the sale of digital securities was illegal, and that those who bought Veritaseum’s token, VERI, were “victims of Defendants’ fraud.” Middleton neither accepted or denied the allegations, instead agreeing to consent to the fines.