Recently, a crypto entrepreneur who managed to raise around $21 million from an ICO in 2018 pleaded guilty to fraud. The watchdog in the United States, the DOJ, said that the CEO of Titanium Blockchain tricked its customers by offering them a “BAR” ICO, which turned out to be a scam.
According to reports, CEO Michael Stollery has issued a funding round for tokens that promise innovation for the virtual marketplace. However, it is all a scam and steals money from investors.
Scam with crypto BAR
Prosecutors said entrepreneur Michael Stollery had admitted to impersonating the Titanium blockchain system to scam customers. Stollery admits that the purpose of the BAR token, the technology, and the ROI opportunities it offers are all wrong. He also clarified that the BAR was never reviewed by the SEC, the main US regulatory agency.
Titanium company has set a goal to offer solutions in blockchain technology. Its services have been dubbed as blockchain cloud extension, network analysis, and crypto mining. On the other hand, Titanium Blockchain has been dubbed as the company that will usher in a new era in crypto technology, but that is all a hoax.
Prosecutors believe Stollery and his fake company fabricated the information to make him look attractive. These include fake reviews of people and companies suspected of using Titanium and the company’s relationships with federal agencies and large corporations such as Walt Disney, PayPal, or Verizon.
Titanium blockchain reimburses stolen funds
After the CEO of Titanium Blockchain company Stollery Michael was arrested for fraud, the sites that contributed to the scheme promised to return the stolen funds. On the other hand, after pleading guilty to charges of cyber fraud, Stollery will face more than 20 years in prison.
Stollery pleaded guilty after a 4-year investigation by the American Stock Exchange. The agency has hired a lawyer from Holland & Knight to handle the case.
Titanium Blockchain will reportedly return the stolen funds to the most affected customers on June 28. It is not known exactly how much money was returned, but it is estimated that more than 50 percent of the ICOs were raised.
Crypto scams are on the rise as more and more people take the opportunity to invest their money in cryptocurrencies despite the market downturn. However, national regulators took note of these reports and arrested companies or entrepreneurs involved in crypto fraud.
Crater Randall, creator of My Big Coin, a crypto company that raised about $6 million in a funding round that ended in fraud, was recently sentenced to several years in prison.