Titanium Blockchain CEO confesses to US Department of Justice for defrauding $21 million in an ICO

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2022-07-28 13:11:49

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 a fraud scheme. ICO issuance.

Titanium Blockchain CEO confesses to US Department of Justice for defrauding $21 million in an ICO

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

“Stollery did not register an ICO related to TBIS’s crypto investment offering with the U.S. Securities and Exchange Commission (SEC), nor does it have a valid waiver of registration requirements. by legal authorities.”

In its 2018 complaint, the SEC said Stollery’s “conspiracy” raised up to $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 also claimed 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, Stollery could face up to 20 years in prison. He is expected to be sentenced on November 18, 2022.

However, it can be seen that US federal regulators are becoming more active in the crypto space to “hunt down” bad individuals in the industry.

A few days ago, the US Department of Justice and the SEC filed separate charges against Ishan Wahi, Former Coinbase Product Manager, and two others for insider trading. Not only that, through this event, both the SEC and CFTC simultaneously launched a comprehensive “attack” on Coinbase, accusing the exchange of listing up to 9 tokens as securities, FUD is causing the market to adjust slightly on the 26th. /07 besides the pressure to raise interest rates from the Fed, which will take place this week.

In the past, cases like Mr. Ishan Wahi are also not new in the cryptocurrency market. The most prominent is the case of the former Ethereum programmer who was sentenced to 5 years in prison after a trip to North Korea.

Next is a permanent crypto trading ban for the associate of John McAfee – who caused many “turbulences” in the industry before, was suspected of committing suicide in prison after being extradited to the US by the court on charges of hiding. tax as well as former developer Monero (XMR) has now been released by a South African Court after a long time under the management of the US government for fraud.

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