The US Securities and Exchange Commission (SEC) will terminate the Titanium Blockchain Infrastructure Services Inc. ICO project, which illegally attracted $21 million from investors in the US and beyond. This is stated in the press release of the SEC.
President of Titanium Blockchain Michael Stoller misled investors about the project’s relationship with the Federal Reserve and dozens of well-known companies (including Boeing, Verizon, PayPal, Walt Disney, etc.), the SEC said.
Stoller publicly stated that he has relations with numerous corporate clients, and the site Titanium posted false reviews, said the SEC.
ICO was actively promoted through video clips, in which investments in Titanium were compared with investments in Intel or Google.
“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,” said Robert A. Cohen, Chief of the SEC Enforcement Division’s Cyber Unit.
On May 22, regulators first filed a complaint with the Federal District Court of Los Angeles. They blame Stoller and Titanium for violating anti-fraud provisions and federal securities laws.
The SEC is seeking a judicial injunction that will allow the return of “illegally obtained income” with fines and interest. They are also looking for an opportunity to ban the founder of Titanium from releasing digital assets in the future.