Titanium Blockchain CEO Pleads Guilty To Fraudulent Scheme
Michael Stollery, CEO of Titanium Blockchain Infrastructure Services, has pleaded guilty to conducting a fraudulent initial coin offering that attracted $21 million from U.S. and foreign investors, according to a press release The U.S. Department of Justice.
According to court documents, Stollery did not register his ICO with the Securities and Exchange Commission as required, and he did not have an exemption from these requirements. He admitted to falsifying the token's white paper, as well as the approval of the coin by users on its website, creating a facade of legitimacy.
He also admitted that instead of investing his clients' money, he used at least some of the funds for his own credit card payments and to pay bills at his vacation home in Hawaii. Stollery and his company were initially charged with securities fraud in May 2018.
Stollery faces up to 20 years in prison on charges of securities fraud.
https://coin-signal.com/cryptonews/titanium-blockchain-ceo-pleads-guilty-to-fraudulent-scheme/
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