The US Securities and Exchange Commission obtained a court order stopping the activities of Titanium Blockchain Infrastructure Services (TBIS), a blockchain startup. The company had raised $21 million from both local and international investors. The SEC said that the court had approved an emergency freezing of the company’s assets as well as the appointment of a receiver for the company. The SEC alleges that TBIS is involved in fraudulent activities that include deceiving investors about the company’s relationships with many big firms such as Boeing and The Walt Disney Company. The SEC asserted that the company’s CEO, Michael Alan Stollery, had to investors about the company’s association with major firms get more investment.
The SEC also that Titanium had created fake testimonials from its corporate clients. Stollery is also accused of having promoted the fraudulent ICO in YouTube videos and on social media platforms, equating investing in Titanium to investing in Intel or Google. Titanium had published the logos of 24 well-known companies on its website which it claimed to have been working with, but none of the partnerships were real. Titanium consented to the appointment of a permanent receiver following the issuance of a temporary restraining order by the court. The appointed receiver had already begun identifying the company’s assets, the company revealed, while assuring its token holders that all the involved parties would strive to arrive at the best possible outcome. The company also cautioned its community against paying attention to its Telegram channel, which it says “is no longer managed.” Information posted there may be disseminated by malicious individuals who are impersonating Titanium employees and may contain false statements, the company warned. Titanium remains unfazed by the setback, assuring its community that product development will continue quietly in the background.
Jeffrey Newman represents whistleblowers