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