Veritaseum CEO Reggie Middleton contests SEC emergency lawsuit

Reggie Middleton's legal counsel has filed a brief ahead of next week's hearing with the Securities and Exchange Commission

Legal counsel representing Veritaseum CEO Reggie Middleton has filed an opposition case to the Securities and Exchange Commission’s emergency action lawsuit filed last week.

The SEC’s lawsuit imposed a freeze on all assets held by Veritaseum, Middleton and associated companies in light of the firm’s “fraudulent ICO” in 2017.

The court filing stated that Veritaseum’s VERI token was an unregistered security and that it was sold to the public alongside “material misrepresentations and omissions”.

Middleton’s legal team has now disputed those claims in their own filing, which states: “The tokens are not investments and are not securities. They do not represent an ownership interest in Veritaseum or its assets; do not give holders any right to share in the company’s profits; do not confer voting rights; and do not pay dividends or interest.“

“Middleton consistently emphasised the potential uses of the blockchain-based software platform Veritaseum was developing and that the tokens should not be purchased as an investment or for speculation.

“In addition, on at least 15 occasions, Mr Middleton publicly stated that VERI tokens are not investments.”

Middleton’s counsel went on to reveal how the New York-based entrepreneur has previously cooperated with the SEC, stating that he “provided to the SEC voluminous documents and data” and “gave five full days of testimony”.

The statement continued: “Mr Middleton and Veritaseum produced to the SEC voluminous documents and information in response to subpoenas and voluntarily provided additional information in response to a large number of informal requests by the SEC staff.”

It also reveals how Middleton gave a sworn testimony to the SEC in five different full-day sessions.

The hearing will take place on Monday, August 26.

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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.

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