More than $8.8 billion worth of capital has been raised via Initial Coin Offerings (ICOs) since 2016. Fresh entrepreneurs across the globe are looking into how they can get involved in this new fundraising programme. The interesting thing about ICOs is that all business is conducted electronically on global blockchain networks, so it is very easy for companies to locate themselves where the regulation is most appropriate.

We stated in our previous write-up that the chairman of the US Securities and Exchange Commission, Jay Clayton, announced in a statement on May 22nd, where he praises for lawmakers and law enforcers who have been actively working towards developing crypto-related policies: “I applaud our fellow regulators in the United States and Canada who are coordinating and participating in efforts to police fraud in the Initial Coin Offering (ICO) markets. These state and provincial regulators play a critical role in protecting Main Street investors.”

The SEC has now received a court approval for emergency asset freeze and the appointment of a receiver for Titanium Blockchain Infrastructure Services (TBIS) pertaining to an initial coin offering (ICO).

Between November 2017 through at least January 2018, the ICO succeeded in raising as much as $21million in digital assets, such as Ether and Bitcoin, and cash from dozens of investors located in at least 18 states, and abroad, who purchased the BAR coin.

The alleged ICO fraud was concocted by Titanium President Michael Alan Stollery, who endorsed himself as a “blockchain evangelist. According to the SEC, Stollaire lied about relationships with big named corporate clients to help stir up interest in the ICO. Stollaire claimed relationships with PayPal, Boeing, the Walt Disney Company and more.

He even apparently said he had a business relationship with the Federal Reserve. These companies became aware of Stollaire’s misuse of their logos and they demanded the references be removed. As late as May 21st, some references remained.

“This ICO was based on a social media marketing blitz that allegedly deceived investors with purely fictional claims of business prospects,” stated 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 complaint also charges another Stollaire company, EHI Internetwork and Systems Management Inc., with violating the antifraud provisions.

The complaint seeks preliminary and permanent injunctions, return of allegedly ill-gotten gains plus interest and penalties, and a bar against Stollaire to forbid him from joining in offering digital securities in the future.

Following the court’s direction of a temporary restraining order against them, Stollaire and associate companies consented to the entry of a preliminary injunction and the appointment of a permanent receiver over Titanium.

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