Titanium Blockchain Infrastructure Services CEO Michael Alan Stollery pleaded guilty in a cryptocurrency fraud scheme involving the company's initial coin offering, according to the Department of Justice.
The company acted as a cryptocurrency investment platform. Through it, Stollery sought buyers for its digital token as part of the platform's initial coin offering. He admitted that, to do so, he made false statements in the company's white paper explaining how the token worked and how it was different from other cryptocurrencies. Bolstering the false claims were fake client testimonials placed on the website, as well as claims that he had business relationships with the Federal Reserve and other prominent institutions.
Furthermore, according to the DOJ, while the $21 million raised from investors was meant to be used for the company, Stollery used at least a portion of the proceeds for personal expenses like credit card payments and a condo in Hawaii.
Stollery pleaded guilty to one count of securities fraud. He is scheduled to be sentenced on November 18 and faces up to 20 years in prison. A federal district court judge will determine any sentence after considering U.S. sentencing guidelines and other statutory factors.
