Titanium Blockchain boss gets 4 years in prison for BAR’s ICO scam
Titanium Blockchain CEO Michael Stollery has been sentenced to four years in prison for his involvement in a 2018 initial coin offering scandal that left investors $21 million out of pocket.
Stollery, who founded Titanium Blockchain Infrastructure Services (TBIS), was a central figure in what the US Department of Justice has called a “cryptocurrency scam.”
The scheme was an ICO for TBIS that took place between late 2017 and early 2018, and the Titanium Blockchain CEO was instrumental in orchestrating it.
The case is just the latest example of authorities cracking down on fake cryptocurrency schemes and underscoring the need for investor vigilance.
Titanium Blockchain Fraudulently Raises $21 Million
According to a complaint filed by the US Securities and Exchange Commission in 2018, Stollery faced allegations of various wrongdoings related to the ICO, including failing to register it with the regulator.
According to the DOJ, investors had invested in BARs, a cryptocurrency token, to participate in the ICO, which raised about $21 million from the US and abroad. Stollery admitted to commingling the funds raised from ICO investors with his own and using a portion of them to cover his personal expenses, such as credit card bills and payments to Hawaii condominiums.
The SEC also revealed that he falsified whitepapers and certificates and made false claims of business dealings with the US Federal Reserve to deceive investors about TBIS’s credibility and profit potential.
In July 2022, he pleaded guilty to securities fraud and, despite facing up to 20 years behind bars, was sentenced to four years and three months in prison for his involvement in the fraudulent scheme.
The Michael Stollery case highlights the constant threat of crypto fraud
The Titanium Blockchain boss’ sentencing highlights the issue of cryptocurrency fraud, which has become a growing concern in recent years.
According to a report by the Federal Trade Commission, Americans lost over 1 billion dollars to fraud involving cryptocurrencies from January 2021 to March 2022,
Crypto scams can take many forms, from Ponzi schemes to fake ICOs and fraudulent investment opportunities. Victims are often lured by the promise of high returns, but in reality they end up losing their entire investment.
Crypto total market cap currently at $1.12 trillion on the daily chart at TradingView.com
As the crypto market continues to gain popularity and mainstream adoption, more people are at risk of being scammed by these fraudulent schemes.
In response to this growing threat, regulators are stepping up efforts to combat crypto fraud. The SEC has launched several investigations into ICO fraud, resulting in several high-profile cases such as Stollery’s.
The agency has also issued warnings to investors about the risks of investing in cryptocurrencies.
– Featured image from Gokhshtein Media
