Michael Alan Stolleri, CEO of Titanium Blockchain Infrastructure Services (TBIS), was found guilty of participating in the fraud scheme. ICOIt raised about $21 million, according to the U.S. Department of Justice.

The California resident founded TBIS and promoted the platform as a “cryptocurrency investment opportunity,” according to court documents. Stollery encouraged investors to purchase the BAR token offered through the ICO through “a series of false and misleading claims.”

It also failed to register the coin offering as required by the US Securities and Exchange Commission (SEC).

Stollery admitted that he falsified some aspects of the TBIS whitepaper, including the purpose and technology of the coin offering, differences from other tokens, and profitability expectations.

He posted fake customer testimonials on his website and claimed to have a business relationship with the company. fed and dozens of well-known companies lend legitimacy to the project.

“The founder of TBIS did not use the raised assets as promised, instead he combined the funds of ICO investors with his own funds. “At least some of the amount he directs towards his own expenses, such as credit card payments or paying bills for a condominium in Hawaii,” he said.

The SEC filed a lawsuit regarding TBIS activities in May 2018. The regulator sued Stollery and his company for violating anti-fraud and federal securities laws.

Entrepreneur admitted to a securities fraud. The verdict will be announced on November 18, with Stolleri facing up to 20 years in prison.

Recall that in May, SEC Chairman Gary Gensler said that most cryptocurrencies fall within the department’s jurisdiction. The head of the institution announced that the industry is being more tightly regulated and has increased investor protection.

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