Stopped ICO that raised $ 21 million with false information
The legal action accuses the company Titanium Blockchain Infrastructure Services Inc. of offering false testimonies to investors about alleged commercial relations
On May 29 the page of the Securities and Exchange Commission of the United States (SEC) published that it obtained a restraining order to “stop an initial offer of coins (ICO) in progress, which managed to raise approximately 21 million dollars, inside and outside the United States. “
According to the statement, the company involved in the ICO is Titanium Blockchain Infrastructure Services Inc. For this reason, its assets were frozen after “violating the antifraud provisions and registration of federal securities laws.” In addition, the appointment of a permanent receiver in the company was ordered.
The agency’s investigation showed that the Titanium plan involved the creation of two tokens: Titatium Blockchain (BAR) and Titatium BAR (TBAR), negotiable and registered in CoinMarketCap. In this way, ICO was launched in November 2017 and a business plan was offered through which they raised $ 21 million, between cash and cryptocurrencies, from people residing in the United States and abroad.
It was also noted that Titanium used an aggressive advertising campaign on social networks, based on fictitious testimonials and the illegal use of logos of recognized companies. Captured in this way investors whose demand helped to artificially inflate the price of the chips, in order to make profits.
The legal action accuses the company and its CEO and founder, Michael Alan Stollery, of offering false information to investors about alleged commercial relationships with the Federal Reserve and several well-known companies, including PayPal, Walt Disney and McDonald, among others; accusation that also falls on another company managed by Stollery, called EHI Internetwork and Systems Management Inc.
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