Crypto CEO pleads guilty to $21 million fraud scheme, used investor money for Hawaii apartment bills

He described himself as a “blockchain evangelist.” Admission of guilt to securities fraud on Friday after it raised $21 million in an initial coin offer (ICO) through a “series of false and misleading statements,” the Justice Department announced.

Prosecutors said Michael Alan Stolleri, CEO of Titanium Blockchain Infrastructure Services Inc. He admitted to falsifying his company’s initial coin offering white papers, planting false customer reviews, and falsely claiming to have a relationship with the Federal Reserve.

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Stollery further admitted that he did not use the invested money as promised, but instead mixed the ICO investors’ money with his personal money, using at least a portion of the proceeds from the offering to cover non-TBIS related expenses, such as credit card payments and payments from Stollery’s bills. Hawaii condominiumThe Ministry of Justice said in a press release on Monday.

The Department of Justice says the cryptocurrency CEO used investor funds to pay his apartment bills in Hawaii. (iStock / iStock)

Stollery also did not ICO تسجيل Registration With the Securities and Exchange Commission, which obtained an emergency court order to shut down the scheme in 2018.

Robert A. said: Cohen, head of the Cyber ​​unit of the SEC’s enforcement division, said at the time: “This ICO was based on a social media marketing campaign that allegedly deceived investors with purely fictional claims about business prospects.”

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Stolley’s lawyer did not immediately respond to a request for comment on Monday.

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Stollery faces up to 20 years in prison when he is sentenced in November.

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