SEC suspended an ICO project that allegedly supported PayPal and Boeing

SEC suspended an ICO project that allegedly supported PayPal and Boeing

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The US Securities and Exchange Commission (SEC) got from the circuit court of Los Angeles a warrant on the halt of activity and freezing assets of company Titanium Blockchain Infrastructure Services, accused that of intentional introduction in an error investors and violation federal laws on securities.

A startup succeeded to attract $21 million investments during ICO, declaring about a collaboration with the companies of level Boeing, Verizon, PayPal, Walt Disney, and also with Federal reserve of the USA. On the website of project the false reviews corporate clients were placed, and his head Michael Stollaire  in promotional materials compared financial investments in Titanium with investments in Intel or Google.

“This ICO was based on a bright marketing campaign in social medias, that entered in deception of investors, by submitting fictitious business-prospects to them”, – the head of law enforcement subdivision the cyber SEC Robert A. Cohen commented.

Gone to the law of Mays, 22 the complaint of SEC also touched violation other companies Stollaire, EHI Internetwork and Systems Management Inc., requirements in the field of counteraction to the swindle. Investigation proceeds in regard to both company, and now SEC requires the return of means to the investors, impositions of fine on defendants and exactings from them percents, and also to forbid Stollaire any activity on distribution tokens in the future.

We will remind, the representatives of SEC declared repeatedly, that main priority of regulator is defence of interests of investors in cryptocurrencies. A commission tries to carry to the potential investors more knowledge about this area and idea about the necessity of recheck of information acting from the organizers of different financial charts. So, recently SEC decided evidently to show to the potential crypto investors a typical website that is created by swindlers for collection of facilities on the “promising” ICO- projects

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