SEC Receives Emergency Court Order To Stop Fraudulent ICO
The U.S regulatory watchdog - Securities and Exchange Commission (SEC) - has received an emergency court order in order to stop an Initial Coin Offering (ICO) which has charged of fraudulent practices cheating investors in the U.S and internationally.
In its official press release, SEC said that Titanium Blockchain Infrastructure Services Inc., the firm behind this fraudulent scheme has till now raised $21 million from investors. The court has approved for freezing the assets of the firm along with the appointment of a receiver.
Michael Stollaire, President of the Titanium Blockchain Infrastructure has been charged with lying about his business relationships with some big industry giants like Verizon, PayPal, Federal Reserve, Boeing, Walt Disney Company, and dozens of other corporate clients. The SEC further states that the firm had fabricated multiple testimonials and the President Stollaire had allegedly promoted the ICO through different media channels and videos while comparing the investment opportunities to the likes of “Intel and Google”.
Chief Robert A. Cohen of the SEC Enforcement Division’s Cyber Unit said: “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 SEC has sought the return of the funds being raised by Titanium along with interest and additional penalties. In addition, the agency has also asked for a ban on Stollaire from participating in offering digital securities.
Apart from Titanium, another Stollaire company - EHI Internetwork and Ststems Management Inc. - has also been charged with violating antifraud provisions.
Over the past few months, the Securities and Exchange Commission is seen taking some aggressive and strict measures against the possibility of fraud in ICOs and digital tokens. In a bid to make investors aware of how to spot fraudulent schemes, SEC had launched a mock ICO showing key areas where investors need to look out before putting their hard-earned money.
In order to bring further clarity in the matter of ICOs, the SEC will be hosting an Investor Conference on June 13, in Atlanta. Following the town-hall event, investors will also be able to meet SEC officials for a formal discussion on the topic of regulatory measures to be taken in the finch space.
While advertising for this event, the SEC website states: “Meet the people who help make Wall Street work for Main Street. All five SEC Commissioners are coming to Atlanta to meet with you: young people, the military, urban and rural, those saving for retirement, and seniors—the diverse, the dynamic people of the southeast region.”