Veritaseum, headed by the infamous Reginald Middleton, has requested the court for more time to respond to the charges filed by the SEC for allegedly offering unregulated securities. In the backdrop of ongoing court proceedings, the counsel for the defendants filed a document with the New York Eastern District Court to extend the initial date from November 4, 2019, to December 4, 2019.
Only two months after booking the self-proclaimed financial guru Reginald Middleton and his two companies Veritaseum LLC and Veritaseum Inc., the SEC continued with its trend of settling with crypto companies. After reaching agreements with Longfin, PlexCorps and Block.one, it confirmed that it has engaged in settlement talks with Veritaseum, a platform that specializes in building blockchain-based, peer-to-peer capital markets as software on a global scale.
In early August this year, Middleton and his companies were booked on the charges of fraudulently raising $14.8 million by offering digital securities. As per the SEC’s complaint, the defendants allegedly raised the sum through the sales of unregistered securities dubbed “VERI Tokens,” “VERI,” or “Veritas.” The offering conducted via Initial Coin Offering (ICO) in mid-2017, followed by other offers and sales, was deemed illegal as it was based on material misrepresentations and omissions made to mislead investors.
The defendants are alleged to have knowingly misguided the public into believing the claims they made about their prior business and the use of offer proceedings. They made tall claims about the revenue-generating capacity of their current venture, which did not exist, and made a series of manipulative trades of the VERI tokens to artificially raise their price in the market. They were also engaged in misappropriation of funds raised at the beginning of the ICO.
The SEC has not opposed the request the defendants made yesterday to extend the deadline. It appears that the parties are moving towards a mutual resolution of the case.