30 May, AtoZ Markets – One of the key financial regulators in the US, the US Securities and Exchange Commission (SEC) has announced that it obtained a court order to cease the activities an initial coin offering (ICO) that goes under the name Titanium Blockchain Infrastructure Services Inc. The regulatory body claims that the ICO in question has been defrauding investors.
US Regulator SEC Halts Fraudulent ICO Titanium
The US SEC has made an announcement yesterday, stating that Titanium Blockchain Infrastructure Services Inc. has illicitly raised as much as $21 million from investors from all around the world.
The official complaint from the SEC has been unsealed. It states that the President of Titanium Blockchain Infrastructure Services Inc. Michael Ala Stollery, also known as “Michael Stollaire”, has allegedly lied about business collaborations with the Federal Reserve. The SEC also alleges that he lied about such relationships with reputable firms such as Boeing, Verizon, PayPal, and Walt Disney.
In addition, the filing from SEC claims that Mr. Stollaire has stated that his firm has relationships with a number of corporate clients. He has also made up testimonials that were posted on the Titanium website. As per the press release, Mr. Stollaire has advertised the ICO via videos and social media, while claiming that investing in Titanium is equal to investing in “Intel or Google.”
What now for Titanium?
Chief of the SEC Enforcement Division’s Cyber Unit Robert A. Cohen has commented:
“This ICO was based on a social media marketing blitz that allegedly deceived investors with purely fictional claims of business prospects. Having filed multiple cases involving allegedly fraudulent ICOs, we again encourage investors to be especially cautious when considering these as investments.”
The first complaint was filed by the regulators on May 22 in the federal district court of Los Angeles. They have charged both Titanium and Stollaire with breaching anti-fraud and registration federal securities laws. The US SEC is now seeking preliminary and permanent injunctions. This includes the return of “ill-gotten gains” with fines and interest. The regulator also wants to ban Stollaire from participating in digital securities offerings from now on.
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