The CEO of a fake cryptocurrency startup, Titanium Blockchain, has pleaded guilty to securities fraud
- Teresa Bach
- July 26, 2022
- 0 Comments
A press release from the US Department of Justice (DoJ) on Monday said that Michael Alan Stollery, CEO of Titanium Blockchain Infrastructure Services, has pleaded guilty to security fraud. In 2018, he and his company used a scam to get $21 million from investors in an initial coin offering (ICO).
JUST IN: Titanium Blockchain CEO Michael Stollery pleads guilty to conducting a $21 million ICO fraud.
— Watcher.Guru (@WatcherGuru) July 25, 2022
What was the case about?
According to the announcement, court filings suggest that Stollery, 54, used a series of misleading promises to get investors to acquire “BARs,” the company’s blockchain currency. Furthermore, despite being required by US securities legislation, Stollery neglected to register TBIS’s ICO with the SEC.
According to the press release, Stollery confesses to misrepresenting facts in the project’s white paper in order to recruit investors. Stollery said he did business with a number of well-known companies and institutions, like the Federal Reserve, to build trust. He even put fake testimonials on the company’s website.
The CEO of TBIS also confesses that the company failed to deliver on its promises to investors despite obtaining more than $21 million from domestic and international investors. Instead, Stollery confesses to using some of the money obtained to pay personal obligations and maintain a Hawaii condominium.
It is worth mentioning that Stollery and his business were charged with securities fraud for the first time in May 2018. Stollery faces up to 20 years in prison if he pleads guilty to one count of securities fraud. Stollery’s sentencing is set for November 18.
US Department of Justice is working efficiently
It is worth mentioning that the US Department of Justice is becoming more efficient in pursuing technology and crypto-related fraud crimes. For example, only weeks after indicting a former OpenSea executive for identical offences, the US Department of Justice announced that a former Apple lawyer had pled guilty to insider trading.