The head of Titanium Blockchain Infrastructure Services (TBIS) was given a prison sentence of 4 years and 3 months for cheating people who had invested in their initial coin offering (ICO) of $21 million.
The CEO of Titanium Blockchain, Michael Alan Stollery, was recently sentenced for his crime of securities fraud. He accepted the charge and was given a sentence of only 6 years and 8 months.
The US Securities and Exchange Commission (SEC) had already taken action against the Titanium ICO prior to Stollery’s criminal charges. The fraudulent project was able to raise an incredible $21 million in just 3 months before the SEC shut it down.
Titanium Blockchain promised investors the chance to make money with their BAR token. But Stollery tricked them by lying and claiming they were connected with the Federal Reserve and big businesses like PayPal, Boeing, and Disney. They spread these lies through their white paper and social media.
In the plea of guilt, the 54-year-old head of the company admitted to changing promotional materials to attract investors. This fraudulent ICO was extended even further, as Stollery did not invest the money in any kind of blockchain development.
He mixed the ICO funds with his own money, using some of it for personal items.
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