No Disney, No PayPal? SEC Charges ICO Founder Over False Statements

The U.S. Securities and Exchange Commission has charged the company behind an initial coin offering (ICO) and its president with securities fraud.

AccessTimeIconMay 29, 2018 at 8:32 p.m. UTC
Updated Aug 18, 2021 at 9:12 p.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

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

Michael Stollery, also known as Michael Stollaire, has been accused alongside his firm Titanium Blockchain Infrastructure Services with violating the SEC's antifraud and registration provisions in connection with a multi-million dollar token sale. The agency accused Stollaire of fabricating information in claims that Titanium had relationships with companies like PayPal and Disney.

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • Officials with the U.S. securities regulator obtained an emergency asset freeze and the appointment of a receiver in relation to the token sale, which raised as much as $21 million, according to the SEC.

    The focus on alleged misrepresentation echoes similar actions by the agency to combat fraud related to the use case, given that the SEC has accused Centra and its three co-founders of lying about their relationship with card network operators Visa and Mastercard.

    Robert Cohen, the head of the SEC Enforcement Division's Cyber Unit, said in a statement:

    "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 statements, the complaint against Stollaire and Titanium was initially filed on May 22. Another company tied to Stollaire, EHI Internetwork and Systems Management Inc., was also named in the complaint.

    Image via Shutterstock

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.