When Titanium Blockchain Infrastructure Services Inc. (TBIS) appeared, it referred to itself as a research, development, and consulting company that offered blockchain development services. It focused on exposing corporations to beneficial blockchain technology and offered an extensive roadmap that included planning, product architecture, and more.
However, while the Tel Aviv-based firm seemed legitimate, there was a lot going on behind the scenes. It all came to a head with an initial coin offering (ICO) in 2018, which raised a total of around $21 million in funding from investors both in and outside of the US.
That is when the SEC stepped in, filing a complaint and freezing assets and other relief involving the ICO. The complaint targeted Titanium Blockchain’s CEO, Michael Alan Stollery, a/k/a Michael Stollaire.
According to the SEC, he lied about business relationships with over 30 entities to get more funding, including relationships with the Federal Reserve, PayPal, and The Walt Disney Company.
The lies were used in a social media marketing blitz that deceived investors with functional business prospects. The campaign included videos and social media that compared investing in the ICO to investing in “Intel or Google.”
But the scheme involved more than lies about relationships. Titanium Blockchain also falsified testimonials from corporate customers to use on its website. It looked to create the illusion of credibility, which further contributed to duping investors.
Stollery’s efforts drove demand for the digital asset during the ICO because of the big brands that were claimed to be partners. People did not want to miss out, and combined with the incentives dangled in front of them, many investors took part.
It wasn’t until July 2022 that Stollery pleaded guilty to his role in the fraud scheme. At that time, he admitted to falsifying aspects of TBIS’s white papers to entice investors. The misleading information included an explanation of the…
