Crypto bro extraordinaire Michael Stollery, the CEO of Titanium Blockchain, has pleaded guilty to one count of securities fraud, representing a $21 million cryptocurrency scam, the U.S. Department of Justice announced Monday.
Stollery tricked investors into purchasing Titanium’s cryptocurrency tokens, called “BARs,” through “false and misleading statements,” according to court documents, D.O.J. said in a press release.
He also failed to register the token with the SEC, without earning a valid exemption.
Stollery has admitted to falsifying parts of Titanium’s white papers which touted the company’s profitability, explaining how an investment in “BARs” was different from other crypto opportunities. The release further states that Stollery faked client testimonials on the company’s website and claimed that he had a business relationship with the Federal Reserve and other prominent companies such as PayPal in order “to create the false appearance of legitimacy.”
Stollery also forgot to mention to investors that their money was being used to pay off his personal credit card bills and luxury condo in Hawaii, according to the Feds.
The 54-year-old will be sentenced on November 18 and faces up to 20 years in prison.
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