The United States Securities and Exchange Commission is once again going after cryptocurrencies. Only hours ago it was reported that the regulatory body is suing Veritaseum, along with Reginald Middleton, the company’s CEO.

Veritaseum is a company established with the goal to create a revolution in the field of finance by utilizing blockchain and smart contracts.

This situation was brought to light by a crypto news outlet, the Block. The news platform stated that the Securities and Exchange Commission is attempting to halt Veritaseum’s use of funds raised from an Initial Coin Offering crowdfunding conducted in 2017. This event raised the company around USD 8 million. The SEC stated that Veritaseum made false claims to investors about their capacity as well as their coin, VERI, during the crowdfunding campaign.

True to the agency’s claims many investors have doubted Veritaseum’s ability of tokenizing knowledge, supporting P2P businesses as well as assisting self-governing projects.

The Securities and Exchange Commission also stated that the company violated their regulations by claiming that its coin was just software. After the news broke out, in a day the VERI coin lost 60 percent in value.

This year, it is the second time that the agency is filing a large lawsuit. The first one was against a large Canadian company named Kik for violating US laws.