Crypto CEO pleads guilty in $21 million fraud scheme
2 Min Read
Titanium Blockchain's CEO admitted to releasing phony white papers and fraudulent testimonials in an ICO that raised $21 million.
-
Crypto CEO pleads guilty in a $21 million fraud scheme.
The Department of Justice revealed that the CEO of Titanium Blockchain Infrastructure Services Inc. (TBIS) has pleaded guilty to his role in a $21 million cryptocurrency fraud conspiracy (DOJ).
The DOJ said on Monday the CEO, Michael Alan Stollery, had pled guilty to one count of securities fraud.
Stollery promoted his crypto enterprise as a cryptocurrency investment opportunity, enticing investors to purchase BARs, TBIS' sort of coin token service, through a series of misleading representations, according to court records.
Read next: Beware the New Crypto Scam
According to Justice, Stollery failed to register his company's initial coin offering with the Securities and Exchange Commission and did not have a proper exemption.
Stollery also told authorities that he falsified his company’s white papers, which give investors an explanation of the cryptocurrency investment offering and the purpose and technology behind it.
He was also accused of posting bogus client testimonials on his company website and fraudulently claiming to have a good relationship with the Federal Reserve and a dozen other big companies.
Read next: US imposes sanctions on Blender.io over alleged North Korean violation
It stated that he admitted combining investor monies with personal finances for purposes unrelated to his company, such as credit card payments and the payment of bills for his Hawaii condominium.
Stollery is facing up to 20 years in prison and is scheduled to be sentenced on November 18.
