Titanium Blockchain founder and CEO Michael Alan Stollery has pleaded guilty to conducting a touted fraudulent initial coin offering (ICO) worth $21 million.
Stollery’s operation was unrecorded and riddled with falsehoods.
Stollery was indicted in a Los Angeles district court in early June on one count of securities fraud. The prosecutor alleged that Stollery enticed unsuspecting investors to buy “BARs”, a crypto currency issued by his firm, using falsified data, which was backed by ridiculous claims about the bullish potential of the token.
Stollery too Counterfeit white papers, which misled people about their project and its underlying digital framework. Furthermore, he forged numerous customer testimonials on the official Titanium Blockchain website and lied about his company associations.
Through Titanium’s initial coin offering, Stollery raised approximately $21 million between November 2017 and January 2018. However, the ICO was not registered with the United States Securities and Exchange Commission (SEC) as it is. mandatory, which makes your entire operation illegal from the start. .
Stollery faces up to 20 years in prison.
The guilty plea comes after Stollery admitted to using the illegally acquired money to pay for his personal expenses, including credit card payments and other charges incurred during his numerous Hawaii vacations.
In 2018, US authorities froze Titanium’s assets after Stollery lied about his professional relationships with the Federal Reserve and major multinationals, including PayPal and Verizon.
AndrewNew Holmes, Stollery’s defense attorney, noted that the guilty plea stems directly from the SEC charges mentioned above, adding:
“It was an excess of exuberance that went beyond what it should have done. Mr. Stollery is very remorseful and wants to return as much money as possible to those who put their money in.”
Stollery is out of police custody on a signed bond at press time. He faces a life sentence of up to 20 years along with other possible monetary penalties. He is scheduled to be sentenced on November 18.
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This post Titanium Blockchain CEO Pleads Guilty in Fraudulent $21 Million ICO Case
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