Titanium Blockchain CEO behind the ICO BAR scam, jailed for 4 years
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The watchdog Titanium Blockchain has finally been cursed after competing in embarrassment last July.
The California-based CEO of Titanium Blockchain has been doomed to four caps — ending the 2018 original coin-busting (ICO) saga that stripped investors of $21 million.
Michael Stollery, who innovates the Titanium Blockchain Structures Service (TBIS), was a key figure in a “cryptocurrency fraud scheme” involving burning real coins for TBIS that was committed between late 2017 and early 2018, according to the Department of Justice.
Investors buy crypto alerts called BAR to share in the ICO. roughly $21 million was collected from the United States and abroad, according to the Department of Justice.
However, in a United States Securities and Exchange Commission complaint in 2018, Stollery was charged with not registering an ICO with a controller, among other allegations.
In July 2022, he pleaded guilty to one count of securities fraud for his role in a “fraudulent scheme.” ”
He admitted to falsifying aspects of the TBIS whitepaper and posting fake customer testimonies on the TBIS website, along with false claims of business ties with the United States Federal Reserve, all of which misled investors about the legality and profitability prospects of TBIS.
He also admitted to combining ICO investor finances with his own, using some of it to pay unrelated expenses such as credit card bills and bills for his condo in Hawaii, according to the SEC.
Although he faces up to 20 detentions, he will serve a total of four and three months in detention for his involvement.
The SEC steps up law enforcement
The SEC has stepped up its behavior towards the cryptocurrency space in recent times.
According to Cornerstone Research, the number of cryptocurrency-related actions brought by the SEC will increase in 2022, with 30 enforcement actions against demanders of digital assets at that time, more than 50 of the 20 actions taken in 2021.
Of the total 30 enforcement actions in 2022, 14 involved the destruction of original coins (ICOs), with more than half involving fraud allegations.
“Based on its conduct against the US Supreme Court Howey Test, the SEC continues to pursue conduct that dictates that warnings issued in burning of unrecorded securities related to ICOs are investment contracts subject to SEC regulation and enforcement,” said Abe Chernin, co-chair of Cornerstone Research and one of the head of its FinTech practice.
“We have observed increased support to the SEC from outside agencies and associations during crypto-related checks under the Gensler administration,” he added.
The post Titanium Blockchain CEO behind the ICO BAR scam, who was jailed for 4 years first appeared on BTC Wires.
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