Crypto News: US SEC Files Lawsuit Over Fraudulent ICO
We have breaking crypto news from the US. The United States Securities and Exchange Commission (SEC) has filed a lawsuit against a company for allegedly conducting a fraudulent initial coin offering (ICO).
The SEC has accused the firm, Titanium Blockchain Infrastructure Services Inc., of defrauding investors into thinking that major companies like The Walt Disney Corporation and Verizon Communications had expressed interest in the ICO. The SEC is alleging that the company’s executive promised that its ICO would make investors vast profits.
The accused firm allegedly paid three individuals to promote its ICO on television, radio and online. Earlier this year, it was reported that more than $21 million had been raised as part of the scheme.
An official statement released by the SEC said: “These defendants sought to capitalize on the perceived promise of new technologies by using a sophisticated marketing campaign to spin a web of lies about their supposed partnerships and potential investments”.
The lawsuit explains how Michael Alan Stollery, who served as TBIS’ president during token sales in 2017, made false claims about investments from venture capital firms, promising investors up to an ‘8000% return’ on their investments. They also promised investor rewards if they purchased tokens from TBIS.
The lawsuit seeks permanent injunctions, disgorgement plus interest and penalties for violations of federal securities laws and an officer-and-director bar against Stollery.