Reginald Middleton, the founder of Veritaseum, a crypto project that was charged by the United States Securities and Exchange Commission (SEC) in August, has asked for more time to respond to the complaint.
As Stmarket.co reported following the initial filing, the SEC alleged that Veritaseum’s $14.8 million initial coin offering (ICO) violated U.S 'security' registration laws, antifraud provisions, and at the same time exhibited traits of manipulative trading.
However, Middleton, in a first legal response to the SEC, accused the regulator of failing to protect investors by taking an action that led to a freefall in the value of Veritaseum [VERI] tokens. The founder also refuted claims that Veritaseum tokens were securities and that they did not manage funds properly.
As one would expect, the SEC resorted to taking the matter to court, eventually forcing Middleton’s legal team to open discussions that will lead to a potential resolution of the case outside the courtroom.
Reporting on what happened today, Financefeedsnoted that the legal counsel for Veritaseum filed a document with the Court, requesting that the defendants’ time to respond to the complaint be extended from November 4, 2019, to and including December 4, 2019.
Notably, the SEC did not oppose Veritaseum’s request, suggesting that both parties could reach an agreement that would see the startup pay penalties in the same way that several projects charged by the SEC have done.
Earlier this month, we reported that EOS developer, Block.one settled charges with the SEC for $24 million after the company was contacted regarding its unregistered $4 billion ICO in 2017.