The Rise and Fall of Michael Alan Stollery: A Cryptofraud Scheme

03/25/2023 03:35 • AI & Tech Insights • 69 views

On March 25th, according to an official announcement from the US Department of Justice, Michael Alan Stollery, founder and CEO of the cryptocurrency investment platform Titanium Blockchain Infrastructure Services (TBIS), was sentenced to four years and three months in prison for allegedly engaging in a $21 million cryptofraud scheme. Previously, he had admitted to conducting a $21 million fraudulent ICO in 2018 and failing to register with the United States Securities and Exchange Commission (SEC) as required, And forged the white paper on the token and the user’s recognition of the token on their website.

The founder of TBIS was sentenced to four years and three months in prison for allegedly carrying out a $21 million encryption fraud scheme

In an official announcement made by the US Department of Justice on March 25th, Michael Alan Stollery, the founder and CEO of Titanium Blockchain Infrastructure Services (TBIS) was sentenced to four years and three months in prison. The reason behind this harsh punishment was his alleged involvement in a $21 million cryptofraud scheme. This article will delve deeper into the story of Michael Alan Stollery, the rise and fall of TBIS, and how the US government brought him to justice.

The Beginning of TBIS

Founded in 2017 by Michael Alan Stollery, Titanium Blockchain Infrastructure Services (TBIS) was a cryptocurrency investment platform that promised its investors high returns on their investments. The platform had gained popularity among investors globally and had raised around $21 million through its ICO in 2018. However, it was all a fraudulent scheme.

The Cryptofraud Scheme

According to the SEC, Michael Alan Stollery failed to register TBIS as a security with the United States Securities and Exchange Commission (SEC), which is a requirement for any investment platform. Additionally, it was found that he had forged the white paper on the token and the user’s recognition of the token on their website. Stollery had duped investors into believing that the platform was legitimate, and their investments were safe.

The Fall of TBIS

The US government had been investigating TBIS and Stollery’s involvement in it for quite some time. In 2018, the Securities and Exchange Commission (SEC) issued an emergency cease and desist order to TBIS, which was later made permanent. The order indicated that the company had made fraudulent claims regarding their business partnerships, endorsements, and customer base on their website. The SEC found that TBIS had made these claims to make themselves look more legitimate and portray themselves as a successful business.

The Arrest and Sentencing

In April 2018, Michael Alan Stollery was arrested, and the SEC filed charges against him. The court found him guilty of conducting a $21 million fraudulent ICO and failing to register with the SEC. In March 2021, he was sentenced to four years and three months in prison, along with three years of supervised release. He was also ordered to pay back $9.2 million to his victims, and his personal assets were seized by the government.

FAQs

1. What was the reason behind Michael Alan Stollery’s arrest?
Ans. Michael Alan Stollery was arrested for his involvement in a $21 million cryptofraud scheme that he conducted through his company, Titanium Blockchain Infrastructure Services (TBIS).
2. What was the role of the SEC in this case?
Ans. The SEC was investigating TBIS for quite some time and had issued an emergency cease and desist order to it in 2018. The SEC had found that TBIS had made fraudulent claims regarding their business partnerships, endorsements, and customer base on their website. The SEC also found that Michael Alan Stollery had conducted a fraudulent ICO and failed to register with them.
3. What is the punishment that Michael Alan Stollery received?
Ans. Michael Alan Stollery was sentenced to four years and three months in prison, along with three years of supervised release. He was also ordered to pay back $9.2 million to his victims, and his personal assets were seized by the government.

Conclusion

The story of Michael Alan Stollery and TBIS is a reminder of the importance of checking the legitimacy of investment opportunities before investing one’s hard-earned money. The US government’s swift action against TBIS and Michael Alan Stollery’s arrest and sentencing also demonstrate the seriousness with which they take fraudulent schemes in the cryptocurrency space. It serves as a warning to others who may be contemplating conducting fraudulent activities in the industry.

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