Yesterday, we broke the news of an investigation by the SEC into Titanium, and today things look even worse than we initially thought.

A press release just put out buy the Securities and Exchange commission is accusing Titanium Blockchain (trading under TBIS) of multiple instances of fraud - and has now issued an "Emergency Order Halting Fraudulent Coin Offering Scheme".

The SEC outlines the violations as:

"Titanium President Michael Alan Stollery, a/k/a Michael Stollaire, a self-described “blockchain evangelist,” lied about business relationships with the Federal Reserve and dozens of well-known firms, including PayPal, Verizon, Boeing, and The Walt Disney Company.  The complaint alleges that Titanium’s website contained fabricated testimonials from corporate customers and that Stollaire publicly – and fraudulently –claimed to have relationships with numerous corporate clients.  The complaint alleges that Stollaire promoted the ICO through videos and social media and compared it to investing in Intel or 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.

IDEX has de-listed the coin, and we expect other exchanges to do the same.

The full SEC press release can be viewed here. 

Titanium Blockchain, which trades under 'TBAR' has been visited by the SEC in their US offices - seizing computers, cell phones - and freezing all company assets, virtually placing the company under SEC control until the investigation is over.

GCP has obtained the SEC documents to review the case - which reads...

"by evidence establishing a prima facie case and reasonable likelihood that defendants Titanium Blockchain Infrastructure Services, Inc. (“TBIS”), EHI Internetwork and Systems Management, Inc. aka EHIINSM, Inc. (“EHI”), and Michael Stollery, aka Michael Stoller, aka Michael Stollaire (“Stollaire”) (collectively, “Defendants”) have engaged in, are engaging in, are about to engage in, and unless restrained and enjoined will continue to engage in transactions, acts, practices, and courses of business that constitute violations of Section 17(a) of the Securities Act, 15 U.S.C. § 77q(a), and Section 10(b) of the Exchange Act, 15 U.S.C. § 78j(b), and Rule 10b-5 thereunder, 17 C.F.R. § 240.10b-5"

We attempted to reach Titanium staff via their official Telegram channel, but was told "We cannot comment on that" by an admin.

It would appear this is part of 'Operation Crypto Sweep' - a joint investigation between US and Canadian officials that is underway now - looking in to hundreds of recent ICOs. Our sources say up to 70 may be served with similar restraining orders for further investigation.

*UPDATE* - There are new developments to this story here.