SEC shuts down Titanium's fraudulent ICO campaign

The US SEC obtained an emergency order halting fraudulent coin offering scheme of Titanium Blockchain Institute Services Inc. on May 29, 2018
30 May 2018   1812

The US Securities and Exchange Commission has obtained a court order to halt the activities of an fraudulent ICO that scammed the investors with a false advertising. According to the SEC press release, Titanium Blockchain Institute Services Inc. has raised $21 million from investors all over the world.

The complaint from the SEC that was unsealed yesterday, on May 29, implicates that TBIS and the company's president Michael Alan Stollery, also known as Michael Stollaire, the self-proclaimed “blockchain evangelist, lied about the company's business relationships not only with dozens of well-known firms but even with the Federal Reserve. Advertisements contained mentions of such firms as The Walt Disney Company, PayPal, Verizon and Boeing, to name the few. The ad campaign has taken media by storm with mentions of big names and promises of unrealistically large gains. Fabricated testimonials from corporate customers and Stollaire's public – and fraudulent – claims to have relationships with numerous corporate clients have been featured prominently on the Titanium's ICO website, social media and in their promotional videos.

“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.”
Robert Cohen, the head of the SEC Enforcement Division's Cyber Unit said in the statement published on the SEC's official website.

The investigation into Titanium's violation of federal antifraud provisions is in full swing right now, with Stollaire's another company - EHI Internetwork and Systems Management Inc. - also being charged for similar violations. The investors will have to wait for the judicial system's final decision, but the SEC demands banning Stollaire from participating in digital securities offerings in the future and return of all allegedly “ill-gotten gains” plus interest and penalties.

P. Durov Called to Testify in SEC vs Telegram Case

To testify, Durov will choose the date of January 7 or 8, 2020 and the address agreed by the participants in the process
26 November 2019   234

Telegram founder Pavel Durov and two company employees must come to testify during the current trial with the US Securities and Exchange Commission (SEC), CoinDesk writes referring to a document signed on November 25 by Judge Peter Kevin Castel of the New York Southern District Court. .

According to the document, to testify, Durov will choose the date of January 7 or 8, 2020 and the address agreed by the participants in the process. The main meeting at which the legal status of the Gram token will be decided is still scheduled for late February.

Also on December 16 in London, testimony should be given by Telegram Vice President Ilya Perekopsky, presumably responsible for contacts with investors during tokensales. The third person called to pre-testify on December 10 in London is Syam Pareh, a Telegram employee, whose name is indicated in the documents for investors.