The Commission on securities and exchange Commission (SEC) received from the Federal district court in Los Angeles order suspension of activities and the freezing of assets of the company Titanium Blockchain Infrastructure Services, which is accused of deliberately misleading investors and violating Federal securities laws.
The startup has managed to attract during ICO $21 million investment, declaring cooperation with companies such as Boeing, Verizon, PayPal, and Walt Disney, as well as by the Federal reserve. The project website was posted fake reviews korporativni customers, and its head Michael Alan Stollery (Michael Alan Stollery) in promotional materials comparing investments in Titanium with investments in Intel, or Google.
“This ICO was based on good marketing campaign in social media, which was introduced in the deception of investors, introducing them to fictional business prospects,” commented the head of the enforcement division of the cyber SEC Robert Cohen (Robert A. Cohen).
Filed in the court on 22 may, the SEC complaint also concerned the violation of another company Stollery, EHI Internetwork and Systems Management Inc., requirements in the sphere of combating fraud. The investigation against both companies are ongoing and at the moment, the SEC requires the return of funds to investors, imposing a fine on the defendants and the recovery of their interest, and to prohibit Stollery any activity on the distribution of tokens in the future.
We will remind, representatives of the SEC have stated repeatedly that the main priority of the regulator is to protect the interests of investors in the cryptocurrency. The Commission is trying to convey to potential investors more knowledge about this area and the idea of the necessity of verifying the information received from the organizers of the various financial schemes. Recently, the SEC decided to demonstrate to potential kriptosistem a typical website, which is created by scammers to raise funds for “promising” ICO projects.
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