On August 12, 2019, the SEC commenced an action against Reginald Middleton, Veritaseum, Inc., and Veritaseum, LLC (collectively, the “Defendants”). The SEC alleged that, beginning on April 25, 2017, the Defendants fraudulently raised approximately $14.8 million from the unregistered sales of digital securities called “VERI” based on a series of false and misleading statements to potential and actual investors, including misrepresentations about the potential profitability and viability of Veritaseum’s purported operations, the use of funds raised in the VERI initial coin offering (“VERI ICO”), and the amount of funds raised in the VERI ICO. The SEC further alleged that, after the VERI ICO, Middleton placed manipulative VERI trades on a digital asset platform to artificially increase its price and then publicly touted the price increases.

On November 1, 2019, the Court entered the Final Judgment that ordered the Defendants pay disgorgement of $7,891,600 and prejudgment interest of $582,535 and ordered Middleton to pay a civil penalty of $1,000,000. The Court created the Veritaseum Fair Fund pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, 15 U.S.C. § 7246(a), combining the collected disgorgement, prejudgment interest, and civil penalties for distribution.

If you received VERI tokens between April 25, 2017 and August 14, 2019, you may be eligible for compensation from the VERI Fair Fund.

UPDATE:

The distribution process is continuing to proceed pursuant to the Court Approved Distribution Plan, which may be viewed here: https://www.sec.gov/divisions/enforce/claims/docs/middleton-approved-distribution-plan-021721.pdf

The Fair Fund has successfully completed its mandatory Third Party Review. The actions required pursuant to Section VII of the Distribution Plan are presently in progress, and the Distribution Agent is working to ensure payments are issued as soon as possible. Claim payments will be issued via check, and they will be mailed via U.S. First Class mail. You will receive an email confirmation once the checks have been issued.

Should you wish to update your mailing address, please contact us no later than March 14, 2023 at 2 p.m. EST.

No further actions are required by you at this time.