The US Securities Exchange Commission has got judicial power to force ICO project Titanium Blockchain Infrastructure Services Inc. to shut down business that generated $21 million investments in the USA and outside the country.
"The court also approved an emergency asset freeze and the appointment of a receiver for Titanium Blockchain Infrastructure Services Inc., the firm behind the alleged scheme," reads the release.
The commission also stated in its press-released that Titanium CEO misinformed investors regarding the cooperation of the company with the US Federal Reserve and well-known corporations, in particular, Verizon, PayPal, Walt Disney, Boeing.
Specifically, the company's CEO openly noted business ties with numerous corporate clients, with the website of the project being full of faked comments. Titanium also lured investors via clips, in which it compared the running project to investments into Google.
“This ICO was based on a social media marketing blitz that allegedly deceived investors with purely fictional claims of business prospects,” said Robert A. Cohen, Chief of the SEC Enforcement Division’s Cyber Unit. “Having filed multiple cases involving allegedly fraudulent ICOs, we again encourage investors to be especially cautious when considering these as investments.”
The petition was lodged to the federal district court of Los Angeles a week ago. The regulator cited that Titanium and its president broke the federal securities law and sought "preliminary or permanent injunctions, a return of allegedly ill-gotten gains" as well as ban the company CEO Michael Alan Stollery from taking part in any digital asset offering in the future.