Titanium Blockchain will return the money of those affected by ICO fraud
Recently, a crypto businessman who managed to raise around $21 million in an ICO IN 2018 pleaded guilty to fraud. The controlling agency of the United States, DOJ, said that the Titanium Blockchain director defrauded his customers by offering them “BAR’s” ICO, which in the end was just a scam.
According to reports, CEO Stollery Michael announced the funding round of a token that promised to be an innovation for the virtual market. However, it was all a scam and stole the money from the investors.
Scam with crypto-BAR
The prosecution points out that businessman Michael Stollery admits to imitating the Titanium Blockchain scheme in order to deceive customers. Stollery admits that the BAR Token objective, the technology and the opportunities for returns it provided were completely bogus. Similarly, he clarifies that the BAR was never seen by the SEC, the highest American regulator.
The Titanium company fulfilled its goal of providing solutions in Blockchain technology. The services were branded as a Blockchain extension in the cloud, network analysis and cryptomining. On the other hand, Titanium Blockchain touted itself as the company that was going to start a new era in crypto technology, but it was all a scam.
The prosecution believes that Stollery and his fake company took the information to make everything sound attractive. This includes the false opinions of alleged people and companies that used Titanium and the company’s link to the federal agency and big companies like Walt Disney, PayPal or Verizon.
Titanium blockchain refunds stolen funds
After the CEO of the Titanium Blockchain company, Stollery Michael, was arrested for fraud, the site that contributed to this scheme promised to repay the stolen funds. On the other hand, after pleading guilty to the wire fraud charge, Stollery will face more than 20 years in prison.
Stollery pleads guilty after 4 years of investigations into the US stock exchange. The agency appointed a lawyer from Holland & Knight to be involved in the case.
According to reports, Titanium Blockchain will refund the stolen funds to most of the affected clients until June 28. It is not known exactly how much money has been recovered, but it is expected to be more than 50 percent of the ICO collected.
Crypto scams continue to increase as more people take advantage of investing their funds in cryptocurrencies, even though the market is in decline. However, national regulators are aware of these reports and are jailing firms or business people involved in crypto scams.
Crater Randall, the creator of “My Big Coin”, a crypto company that managed to raise around $6 million in a financing round that ended in fraud, was recently sentenced to several years in prison.
