The US Securities Exchange Commission filed a lawsuit against Veritaseum, LLC, and Veritaseum, Inc. and Reginald Middleton for raising $14.8 million in an unlawful digital securities offering. According to the court’s order, Middleton is prohibited from acting as an officer or director of any issuer that has a class of securities registered under Section 12 of the Exchange Act.
The defendants are also prohibited from engaging in any offering of digital securities. The company issued VERI tokens in an ICO that took place from April 25, 2017, to May 26, 2017. SEC in its complaint, had alleged that the company misled its investors about their prior business venture and the use of the offering.
The SEC had claimed that the ICO conducted by the company was illegal, as there was no registration statement filed for the offers and sales of VERI tokens.