The SEC obtained a court order halting an ongoing fraud involving an initial coin offering (“ICO”) that raised as much as $21 million from investors in and outside the U.S.  The court order included an emergency asset freeze and the appointment of a receiver for Titanium Blockchain Infrastructure Services Inc., the firm behind the alleged scheme.

SEC FINDINGS.    From late November 2017 through late January 2018, Titanium President Michael Alan Stollery - a/k/a Michael Stollaire, a self-described “blockchain evangelist,” succeeded in raising as much as $21 million in the form of various digital assets, such as Ether and Bitcoin, and cash from dozens of investors located in at least 18 states, including California, and abroad, who purchased the fraudulent cryptocurrency called “BAR.”

Stollery conducted the scheme through 2 companies he controls - Titanium Blockchain Infrastructure Services, Inc. and EHI Internetwork and Systems Management, Inc. – all of whom were named as defendants

Stollery allegedly lied about business relationships with the Federal Reserve and dozens of well-known firms, including PayPal, Verizon, Boeing, and The Walt Disney Company.

• Titanium’s website contained fabricated testimonials from corporate customers and that Stollaire publicly - and fraudulently - claimed to have relationships with numerous corporate clients. 
• Stollaire promoted the ICO through videos and social media and compared it to investing in “Intel or Google.”

The SEC investigation continues. 

[For further details, click on SEC Complaint]