Titanium Blockchain (TBIS), founded by Michael Alan Stollery, aka Michael Stollaire, has issued an official statement regarding the enforcement action by the Securities and Exchange Commission (SEC) which froze all of the TBIS assets in a court ordered emergency action. TBIS raised approximately $21 million in an initial coin offering (ICO) earlier this year.
Robert A. Cohen, Chief of the SEC Enforcement Division’s Cyber Unit, commented on the alleged fraud;
“This ICO was based on a social media marketing blitz that allegedly deceived investors with purely fictional claims of business prospects.”
The SEC indicated that ICO funds had been misused by Stollaire to cover personal expenses such as a condo in Hawaii.
Addressing their community of investors, TBIS stated;
“Titanium Blockchain Infrastructure Services is subject to a receivership order entered by the United States District Court for the Central District of California. The receivership order was part of a Temporary Restraining Order (TRO) issued in connection with an action filed by the U.S. Securities and Exchange Commission (SEC). Titanium has cooperated with, and fully intends to continue cooperating with the SEC’s investigation in accordance with the terms of the TRO. As is often the case, a receiver was appointed in this matter (Case No. 18-4315 DSF (JPRx)). Titanium’s receiver has just begun his efforts to identify assets of the company. He will work closely with the SEC and TBIS to achieve the best possible outcome for Titanium’s community of token holders, employees, and associates.”
TBIS stated that more information would be forthcoming issued by the court appointed receiver. The company also stated the official Telegram channel will no longer be supported and for users to beware of attempts to spoof TBIS statements on all social media platforms. Within the crypto space, spoofs are a common method of fraud.
“We leave you in the best possible hands and welcome the objectivity of our receiver and the SEC. Per instruction, and as usual, product development continues quietly in the background.”
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