SEC Takes Posession of $9.5 million of Veritaseum Assets, 98 Million Veri Tokens
The United States SEC in currently in possession of $9.5 million of Veritaseum Assets and 98 Million Veri Tokens.
The announcement was made recently per a pinned message on the Veritaseum Telegram Group.
It can recalled that after filing a complaint against Veritaseum CEO Reginald Middleton and two of his companies in August 2019, the SEC said that it is engaged in settlement talks with the defendants, fintech publication FinanceFeeds reports on October 9.
The possession of some Veritaseum Tokens and assets by SEC may likely be a result of the reported settlement.
Read excerpt of Veritaseum’s announcement below
A NOTE TO VERITASEUM STAKEHOLDERS
As you may already know, Veritaseum has been engaged in discussions with the Securities and Exchange Commission (“SEC”) regarding its business and operations since approximately August 2017, a time where there was scant to no guidance on the topic of tokenized digital assets.
In August of 2019, the SEC commenced active litigation against Veritaseum, alleging actions the company vehemently denied. Veritaseum, through its legal counsel, pushed back against the allegations but its resources as a startup were simply no match for those of the SEC. The company eventually settled without admitting or denying any of the SEC’s allegations. The settlement included a payment of approximately $9.5 million of assets from Veritaseum and its owners. In addition, the SEC took possession of approximately 98 million VERI tokens. The settlement obligations and associated litigation have drained the company’s capital and put it on the verge of insolvency.
Thanks to the indomitable spirit, drive, and good will of a group of employees and contractors who have been toiling for months without pay, the company is currently working on new products, unrelated to its previous products, which the company will soon roll out in beta. The company is taking the time and devoting sufficient resources to creating products which comply with U.S. legal and regulatory requirements. As Veritaseum develops these new products and services, it plans to move into new markets more amenable to the value it offers.
The company can no longer interact with VERI tokens and is undertaking to rebuild its reserves and launch new products consistent with legal and regulatory guidelines. We greatly appreciate the stakeholders who have loyally supported the company through its developmental phases and through this most recent ordeal. The company is exploring ways of including VERI holders who still wish to support Veritaseum in its future plans and are exploring ways to do so. Unfortunately, the success of any such efforts will require clear guidance from the SEC.
To that end, the SEC has established a “Fair Fund”. The Fair Fund (according to the SEC settlement mandate) is a pool of capital representing amounts disgorged from Veritaseum to compensate those who purchased VERI tokens. The contact for the fund’s administrator is below. Please note that Veritaseum has absolutely no control over, nor any influence on, the Fair Fund, its operation or its contents. The publicly available “Fair Fund” information is provided below as a courtesy and Veritaseum cannot guarantee its accuracy.
Samir Patel, Associate
Holland & Knight LLP
701 Brickell Avenue, Suite 3300 | Miami, Florida 33131
Phone 305.789.7629 | Fax 305.789.7799
firstname.lastname@example.org | www.hklaw.com
Thank you for all of your support and patience as the company works through these challenging times on the way to what we hope is a monumental change in the way capital assets are moved, transferred and traded. Veritaseum looks forward to re-growing its capital assets in a way that is consistent with legal and regulatory requirements.