ICO founder reaches $9.5 million SEC settlement over ICO fraud

Veritaseum founder Reggie Middleton has reached a settlement with the U.S. Securities and Exchange Commission (SEC) for $9.5 million, $1 million of which is a civil penalty. Middleton stood accused of conducting an unlawful offering of securities related to Veritaseuem’s token sale while also manipulating the token’s price after the sale and misappropriating investor funds.

Why it matters:

• Middleton’s settlement comes on the heels of a $24 million settlement with EOS issuer Block.one and $225,000 settlement from Siacoin. Veritaseum raised ~$11 million in its ICO making the settlement a significant portion of funds.
• While some claim that regulators aren’t doing enough the SEC and other agencies have been going after fraud and other illegal elements in crypto. Messari has compiled a list of actions in a handy resource page.