Recently a crypto businessman who managed to raise around $21M in an ICO IN 2018 pleaded guilty to fraud. The controlling agency in the United States, DOJ, said that the Titanium Blockchain executive director defrauded his clients by offering them the “BARs” ICO, which in the end was just a scam.
According to reports, executive Stollery Michael made public the financial round about a token that promised to be an innovation for the virtual market. However, everything was a scam and stole the money from the investors.
Scam with crypto BAR
The prosecution points out that businessman Michael Stollery admits imitating the Titanium Blockchain scheme to deceive customers. Stollery confesses that the BAR Token goal, technology, and ROI opportunities it offered were completely false. Likewise, he clarifies that BAR was never seen by the SEC, the highest US regulator.
The Titanium company fulfilled the goal of offering solutions in Blockchain technology. Its services were marked as a Blockchain extension in the cloud, network analysis, and crypto-mining. On the other hand, Titanium Blockchain referred to itself as the company that would start a new era in crypto technology, but it was all a scam.
The prosecution believes that Stollery and his fake company doctored the information to make everything sound attractive. This includes the false opinions of alleged people and companies that used Titanium and the firm’s link with the federal agency and large companies such as Walt Disney, PayPal, or Verizon.
Titanium blockchain reimburses stolen funds
After the CEO of the Titanium Blockchain company, Stollery Michael, was arrested for fraud, the website that contributed to this scheme promised to reimburse the stolen funds. On the other hand, Stollery, after pleading guilty to the charge of cyber fraud, will face more than 20 years in prison.
Stollery confesses his guilt after 4 years of investigations by the US Stock Exchange. The agency appointed a lawyer from Holland & Knight to be involved in the case.
According to reports, Titanium Blockchain would reimburse the stolen funds of most 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 raised.
Crypto scams continue to rise as more people take advantage of investing their funds in cryptocurrencies, even though the market is in decline. However, national regulators are attentive to these reports and take to jail the firms or business people involved in crypto scams.
Crater Randall, the creator of “My Big Coin,” a crypto company that managed to raise around $6M in a financial round that ended in fraud, was recently sentenced to several years in prison.
