According to the US Justice Department, the founder and CEO of Titanium Blockchain Infrastructure Services Inc. (TBIS) entered a guilty plea for his part in a cryptocurrency fraud scheme that involves generating roughly $21 million through an ICO. In accordance with the prosecutors, the CEO and founder of TBIS, Michael Alan Stollery, 54, of Reseda, California, promoted TBIS as a cryptocurrency investment opportunity and used a number of false and deceptive claims to convince investors to buy “BARs,” the cryptocurrency token or coin offered by TBIS’s ICO. Stollery failed to register the ICO relating to TBIS’s cryptocurrency investment offering with the U.S. Securities and Exchange Commission (SEC), despite being obliged to do so and failing to possess a legitimate exemption from the SEC’s registration requirements. The white papers, which inform investors of the cryptocurrency investment opportunity and its goal and underlying technology, were faked, according to Stollery’s claims to the authorities. False Relationships With Federal Reserve Moreover, according to the justice, Stollery misrepresented his relationships with the Federal Reserve and a number of other well-known firms by posting fake client testimonials on his company website. It stated that he had acknowledged combining investor money with personal funds spent on things unrelated to his business, such as paying credit card bills and expenses for his Hawaii apartmen...
