American http://cryptoainews.space/?p=73 pleaded guilty to organizing $21 million ICO fraud

Titanium Blockchain Infrastructure Services (TBIS) CEO Michael Alan Stollery pleaded guilty to participating in a fraudulent ICO scheme that raised approximately $21 million. It was announced by the U.S. Department of Justice.

According to court documents, the California resident founded TBIS and promoted the platform as a “cryptocurrency investment opportunity”. Stollery lured investors to buy the BAR token offered through the ICO through “a series of false and misleading statements.”.

He also failed to register the coin offering as required by the U.S. Securities and Exchange Commission (SEC).

Stollery admitted that he falsified aspects of the TBIS whitepaper, including the purpose and technology of the coin offering, the differences from other tokens and the profitability outlook.

He posted fake customer reviews on the site and claimed to have business relationships with the Fed and dozens of well-known companies to lend legitimacy to the project.

“The TBIS founder didn’t use the assets raised as promised, instead pooling ICO investor funds with his personal. At least part of the amount he used for his own expenses like credit card payments or condo bills in Hawaii,” according to the press release.

SEC took TBIS to court in May 2018. The regulator charged Stollery and his company with violating anti-fraud regulations and federal securities laws.

Entrepreneur agreed to one count of securities fraud. Sentencing to be announced Nov. 18, Stollery faces up to 20 years in prison.

Recall that in May, SEC Chairman Gary Gensler said that most cryptocurrencies fall under the jurisdiction of the agency. The head of the agency announced stricter oversight of the industry and greater investor protection.