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   1137

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.

California Court to Issue a Temporary Ban on Blockvest

SEC had found a lot of violations, including the "approval" of non-existed "Blockchain Exchange Commission"
15 February 2019   123

The Southern District of California Court, represented by Judge Gonzalo Kuriel, issued a preliminary ban against BlockOw ICO-startup Blockvest LLC and its founder Reginald Buddy Ringold (Rasul Abdul Rahim El), citing violations of securities laws in the past and possible violations in the future.

SEC Info
SEC Info

Court ruled that the BLV tokenail violated the norms of section 17 of the Securities Act of 1933, and recognized tokens as unregistered securities.

November last year, Judge Gonzalo Curiel refused to recognize the Blockvest project token as a security, because the SEC could not prove otherwise.