Michael Stollery, the CEO of Titanium Blockchain Infrastructure Services (TBIS), has pleaded guilty to carrying out a fraudulent initial coin offering (ICO) that raised $21 million from U.S. and overseas investors, according to a press release from the U.S. Justice Department.
According to court documents, Stollery did not register his ICO with the SEC, as he was required to, nor did he have an exemption from those requirements. He admitted to forging the token’s whitepaper as well as user endorsements of the coin on its site, creating a facade of legitimacy.
He also acknowledged that rather than investing his clients’ money, he used at least a part of the funds for his own credit card payments and to pay bills on his vacation home in Hawaii.
Stollery and his company were originally charged with securities fraud back in May 2018.
Stollery faces up to 20 years in prison on the count of securities fraud, and is scheduled to be sentenced on Nov. 18.
Read More: My Big Coin Founder Convicted of Defrauding Investors of More Than $6M