Blockchain and web3 technology have been adopted by almost every industry in some form. The crypto boom, however, has also resulted in widespread security issues, frauds, and scams amounting to billions of dollars lost in 2021 alone. In a $21 million cryptocurrency fraud scheme, a 54-year-old Reseda man falsely claimed his business had partnered with Apple Inc, Pfizer Inc, and Disney, authorities said. The scam was an ICO fraud. Coin offerings are a great way for crypto projects to raise money, like the $4.1 billion raised by Block.one when it released the EOS token
CEO and founder of Titanium Blockchain Infrastructure Services, Michael Alan Stollery, has been charged with securities fraud, the U.S. Attorney’s Office announced Thursday. Stollery also falsified documents explaining how cryptocurrency technology works, posted fake testimonials, and lied about relationships with the Federal Reserve Board and dozens of major companies, prosecutors allege. Due to this, the company raised about $21 million from investors in the United States and overseas with its initial coin offering.
“Mr. Stollery convinced victims to invest by deceiving them with calculated lies about the profit potential and by artfully creating an illusion that he was well-connected and a proven success,” Kristi Johnson, assistant director in charge of the FBI’s Los Angeles Field Office, said in a statement. “ Stollery faces up to 20 years in prison if convicted, officials said.