The US Department of Justice (DOJ) has announced that Michael Stollery, CEO of infrastructure company Titanium Blockchain (TBIS), has pleaded guilty to his role in a $21 million fraud scheme through an ICO issuance.

According to the DOJ, Michael Stollery called the scheme a crypto investment opportunity, luring investors to buy the company’s BAR token through false and misleading claims. The DOJ also said Stollery did not subscribe to TBIS’s services as required by regulation:

“Stollery did not register the ICO regarding TBIS’s cryptocurrency investment offering with the U.S. Securities and Exchange Commission (SEC), nor did he have a valid exemption from the SEC’s registration requirements.”

In its 2018 complaint, the SEC said Stollery raised $21 million in Ethereum, Bitcoin, and cash from dozens of investors in at least 18 states and abroad. In addition to issuing an unregistered ICO, the agency claimed Michael Stollery admitted to using investor funds to pay credit card bills and buy an apartment in Hawaii.

In addition, the SEC also revealed that Stollery admitted to exaggerating the potential returns of BAR tokens, falsifying aspects of the TBIS whitepaper, giving fake customer testimonials, and “faking” relationships with well-known businesses and the Federal Reserve (Fed) on the company’s website.

If convicted, Michael Stollery could face up to 20 years in prison. He is expected to be sentenced on November 18, 2022.

US federal regulators are becoming increasingly active in the crypto space to hunt down individual violators in the industry.

A few days ago, the US Department of Justice and the SEC filed separate charges against Ishan Wahi, a Former Coinbase Product Manager, and two others for insider trading. Additionally, through this event, the SEC and CFTC simultaneously launched an all-out attack on Coinbase, accusing the exchange of listing up to 9 tokens as securities.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

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News

Titanium Blockchain CEO Michael Stollery Pleads Guilty To Defrauding $21 Million

The US Department of Justice (DOJ) has announced that Michael Stollery, CEO of infrastructure company Titanium Blockchain (TBIS), has pleaded guilty to his role in a $21 million fraud scheme through an ICO issuance.

According to the DOJ, Michael Stollery called the scheme a crypto investment opportunity, luring investors to buy the company’s BAR token through false and misleading claims. The DOJ also said Stollery did not subscribe to TBIS’s services as required by regulation:

“Stollery did not register the ICO regarding TBIS’s cryptocurrency investment offering with the U.S. Securities and Exchange Commission (SEC), nor did he have a valid exemption from the SEC’s registration requirements.”

In its 2018 complaint, the SEC said Stollery raised $21 million in Ethereum, Bitcoin, and cash from dozens of investors in at least 18 states and abroad. In addition to issuing an unregistered ICO, the agency claimed Michael Stollery admitted to using investor funds to pay credit card bills and buy an apartment in Hawaii.

In addition, the SEC also revealed that Stollery admitted to exaggerating the potential returns of BAR tokens, falsifying aspects of the TBIS whitepaper, giving fake customer testimonials, and “faking” relationships with well-known businesses and the Federal Reserve (Fed) on the company’s website.

If convicted, Michael Stollery could face up to 20 years in prison. He is expected to be sentenced on November 18, 2022.

US federal regulators are becoming increasingly active in the crypto space to hunt down individual violators in the industry.

A few days ago, the US Department of Justice and the SEC filed separate charges against Ishan Wahi, a Former Coinbase Product Manager, and two others for insider trading. Additionally, through this event, the SEC and CFTC simultaneously launched an all-out attack on Coinbase, accusing the exchange of listing up to 9 tokens as securities.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Harold

CoinCu News

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