The US Securities and Exchange Commission (SEC) has decided to stop an Initial Coin Offering (ICO) known as Titanium that was involved in fraudulent activities. Until the intervention, the ICO was able to raise $21 million dollars from thousands of investors around the world.
According to the complaint that was filed by the SEC in Los Angeles court on May the 22nd, Titanium BAR Token was using social media accounts, fake testimonials, and other tactics to raise funds for its project. The main goal was to gather $35 million dollars from investors.
Back in February, the startup announced that an important number of BAR tokens has been stolen from their wallets, and that they did not know what happen with them. The price of the token dropped an incredible 95% and exchanges halted trading activities with the token.
The SEC explains that Titanium claimed that it was able to sign important arrangements with companies like PayPal, Verizon, Boeing and The Walt Disney Company. The ICO several times said that the efforts that the company was doing could lead to a future increase in the value of the BAR tokens.
I appreciate when the SEC goes after frauds. That should be the extent of their mandate. “https://t.co/5B76nF3Dei | SEC Obtains Emergency Order Halting Fraudulent Coin Offering Scheme” https://t.co/FYdc9lLiZS
— Erik Voorhees (@ErikVoorhees) May 30, 2018
Regulatory agencies all over the world warned investors against ICOs, fraudulent companies, and other similar investments that do not follow US securities laws.
“This ICO was based on a social media marketing blitz that allegedly deceived investors with purely fictional claims of business prospects,” commented 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.”
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