The US Securities and Exchange Commission announced an agreement with Reggie Middleton, the organizer of the first $ 14.8 million (ICO) Veritaseum Coin Offering (VERI).

In a document filed with the Eastern District Court of New York, dated October 31 and issued today, Middleton has accepted the decree authorizing the final judgment, without having to admit or deny the allegations, while waiving any right of appeal.

The settlement comes three weeks after the court announced that it had begun a discussion with Middleton to settle the case.

The defendant agreed to pay about $ 9.5 million to settle the case.

According to the complaint filed with the SEC, Middleton is required to pay interest of $ 8.47 million in restitution and prejudgment judgment, in addition to a civil penalty of $ 1 million.

The case ends the long saga of 2017, Middleton being accused of having allegedly raised millions of dollars via an initial coin offering without registering with the SEC, while inducing investors mislead to attract more funds with false information.

A week after fundraising, Middleton claimed that a hacker had stolen 36,000 of his chips, worth $ 8 million, and then traded them for aether. . Funds are still missing, depending on the file.

According to the initial complaint filed by the SEC, the defendant repeatedly referred to the "software" tokens or compared them to prepaid gift cards for use on a technology platform.

The SEC also accused Middleton of manipulating the value of the securities after the ICO and misappropriating at least $ 520,000 of investors' money for personal gain, the complaint said.

In August, during an emergency action, the Secretary-General froze Middleton's assets and asked the court to prevent him from continuing to operate a public company or to participate in a securities offer in the form of securities. digital assets.

The case is one of the latest fraudulent ICO regulations. Data storage start-up Sia negotiated a $ 225,000 settlement on its $ 120,000 increase on Oct. 1, while EOS's maker, Block.One, agreed to pay a penalty of $ 24,000. USD million on an increase of USD 4.1 billion on 20 September.

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