Titanium Blockchain Infrastructure Services CEO Michael Alan Stollery Sentenced to Over 4 Years in Prison for Cryptofraud

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

On March 25th, the United States District Court for the District of Connecticut officially sentenced Michael Alan Stollery, the CEO and founder of Titanium Blockchain Infrastructure Services (TBIS) to four years and three months in prison for his involvement in a $21 million cryptofraud scheme. Stollery previously pleaded guilty to conducting a $21 million fraudulent initial coin offering (ICO) in 2018 and failing to register with the United States Securities and Exchange Commission (SEC) as required.

Introduction

Blockchain and cryptocurrency have revolutionized how people think about and use money. However, as with any rapidly growing industry, bad actors also seek to take advantage of innocent investors. In the case of Michael Alan Stollery, he was found guilty of conducting a $21 million fraudulent ICO and for failing to register with the SEC as required. Furthermore, he forged the white paper on the token and the user’s recognition of the token on their website. This article explores the details of Stollery’s case, what caused the fraud, and what average investors can do to protect themselves from similar scams.

Background

Stollery, who is also known as Michael Stollaire, created and operated Titanium Blockchain Infrastructure Services, a company that offered blockchain services and cryptocurrency investment opportunities to the public. He launched an ICO in 2018 to raise funds for his company, but as it turned out, the ICO was nothing more than a fraud on unsuspecting investors.

The Cryptofraud Scheme

Stollery used fraudulent tactics to promote the ICO, including fabricating testimonials to create the impression that the company had more users and better technology than was really the case. The white paper presented by Stollery and his company showed that the token was backed by valuable assets that did not exist, and promised investors that they would receive guaranteed profits, which was never possible.
Stollery also directed his employees to buy TBIS tokens using funds from unsuspecting investors in order to inflate the price of the tokens and convince other investors to buy in. He then sold the tokens himself and used the proceeds for personal use. Between November 2017 and March 2018, Stollery collected $21 million from investors through the fraudulent ICO.

The Consequences

In December 2018, the SEC charged Stollery and his company with fraud, and Stollery pleaded guilty in July 2019. He was officially sentenced to four years and three months in prison on March 25th, 2021. Stollery will also pay restitution of approximately $4.4 million to the victims of the fraud. This sentence sends a strong message that fraudulent activities in the cryptocurrency industry will not be tolerated, and those who engage in such activities will face significant consequences.

Protecting Yourself from Cryptocurrency Fraud

Cryptocurrency investment opportunities have become increasingly popular in recent years, but with the significant rewards associated with these investments comes significant risks. Fraudulent activities like those perpetrated by Stollery are a reminder that investors should always do their own research before investing in any cryptocurrency.
One of the best ways to protect yourself from cryptocurrency fraud is to do your own research before investing in anything. Check the company’s white paper and their executive team, as well as any testimonials from supposed users or investors. Be aware of high-pressure sales tactics or guaranteed profits. It is also important to only invest money that you can afford to lose.

Conclusion

Stollery’s four-year prison sentence is a stark reminder that fraudulent activities in the cryptocurrency industry will be met with significant consequences. This case highlights the importance of investors doing their own research before investing in anything and being aware of potential red flags. The cryptocurrency industry continues to evolve and change, and it is important to stay educated and vigilant to protect against fraud and scams.

FAQs

#1. What is Titanium Blockchain Infrastructure Services (TBIS)?

TBIS is a company that offered blockchain services and cryptocurrency investment opportunities to the public. It was founded and operated by Michael Alan Stollery, who was sentenced to over four years in prison for his involvement in a $21 million cryptofraud scheme.

#2. What is a fraudulent initial coin offering (ICO)?

An initial coin offering (ICO) is a way for companies to raise funds by offering investors a new cryptocurrency in exchange for Bitcoin or Ether. A fraudulent ICO is one where the company uses fraudulent tactics to promote the ICO and does not follow through with the promises made to investors.

#3. How can I protect myself from cryptocurrency fraud?

Investors can protect themselves from cryptocurrency fraud by doing their own research before investing in anything, being aware of potential red flags like high-pressure sales tactics and guaranteed profits, and investing only money that they can afford to lose.