Operations Of Digital Currency Mining Firm Banned By Austrian Financial Regulator

The Financial Market Authority of Austria has prohibited INVIA GmbH, a digital currency mining firm that is based in Vienna, from conducting business activities. According to a press release issued by the Austrian regulator INVIA engage in managing an alternative investment fund without authorization.

"The Austrian Financial Market Authority (FMA) has by means of a procedural instruction prohibited the business model of INVIA GmbH… on the grounds of the suspicion of the unauthorized management of an Alternative Investment Fund (AIF)," read the press release.

This comes in the wake of the U.S. Securities and Exchange Commission accusing a blockchain startup known as Titanium Blockchain Infrastructure Services of fraud after raising $21 million from all over the world in an Initial Coin Offering. According to the Securities and Exchange Commission the money was raised between late last year and early this year where fraudulent claims were made to persuade investors.

Per the Cyber Unit head at the Securities and Exchange Commission, Robert Cohen, the Initial Coin Offering of Titanium Blockchain Infrastructure Services rolled out a marketing blitz on social media where investors were deceived with business prospects that were fictitious. The complaint by the Securities and Exchange Commission was filed last week and unsealed earlier this week.

According to the complaint Titanium Blockchain Infrastructure Services and Michael Stollaire, the startup’s president, engaged in fabricating testimonials as well as making statements that were false with a view to gaining the trust of investors. At the time Stollaire told investors that he had built business relationship with well-known billion-dollar companies such as Walt Disney, Apple and PayPal.

The blockchain startup also featured a graphic which appeared on its website and on it were logos from 24 firms some of which are listed above. The graphic came with a claim that these well-known firms were clients of the information technology services that Titanium Blockchain Infrastructure Services offered though that was not the case. Additionally the blockchain startup featured a fake testimonial claiming to be from a ‘service delivery manager’ working for the Federal Reserve.

Once the funds raised during the Initial Coin Offering came in Stollaire used the proceeds to pay bills on a condominium that he owned in Hawaii. He also used the proceeds to pay off credit cards that were in his name.A court order obtained by the Securities and Exchange Commission will now halt the Initial Coin Offering of Titanium Blockchain Infrastructure Services besides enforcing an emergency asset freeze.