SEC Charges ICO Founder for False Statement

Nishanth Shetty

May 30, 2018 11:00 am

SEC Charges ICO Founder for False Statement | Coindelite News
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SEC Charges an ICO Founder for Providing Fake Statements

The U.S. Securities and Exchange Commission (SEC) has fees on a company and its president with securities fraud in connection with efforts to raise funding via an initial coin offering (ICO).

Michael Stollery, (a.k.a) Michael Stollaire, has been charged along with his firm Titanium Blockchain Infrastructure Services with breaking the SEC’s antifraud and registration provisions in connection with a multi-million dollar token sale. The agency claimed that it had relationships with companies like PayPal and Disney.

According to SEC, officials obtained an emergency asset freeze and the appointment of a receiver of the token that raised more than $21 million.

The concern on alleged misrepresentation echoes similar actions by the agency for controlling fraud related uses, provided that the SEC has sued Centra and its three co-founders for lying about their relationship with card network operators Visa and Mastercard.

Robert Cohen, the head of the SEC Enforcement Division’s Cyber Unit said:

“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.”

According to the report, the complaint against Stollaire and Titanium was filed on May 22. Another firm joined Stollaire, EHI Internetwork and Systems Management Inc., was also mentioned in the complaint.

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