On March 24, 2023, Michael Stollery, founder and CEO of Titanium Blockchain Infrastructure Services (TBIS), received a four-year prison sentence for his involvement in a cryptocurrency fraud scheme related to TBIS’s 2018 initial coin offering (ICO). The scheme led to investors losing over $21 million.
Titanium Blockchain Infrastructure Services Inc. (TBIS) Michael Alan Stollery was sentenced to four years and three months in prison on Friday for his role in a fraud scheme involving the firm.https://t.co/xdLHokWsbp
— Real America’s Voice (RAV) (@RealAmVoice) March 25, 2023
According to the United States Department of Justice, Stollery played a central role in a cryptocurrency fraud scheme related to TBIS’s ICO from late 2017 to early 2018.
Stollery marketed TBIS as a lucrative cryptocurrency investment platform and enticed investors to purchase “BARs” through false and deceptive statements. He also used fake client testimonials on TBIS’s website and falsely claimed business connections with reputable organizations to create an illusion of legitimacy.
He did not register the ICO with the U.S. Securities and Exchange Commission (SEC) as required by law and falsified portions of TBIS’s white papers to entice investors to participate.
Furthermore, Stollery used a portion of the offering proceeds for non-TBIS expenses, such as credit card payments and paying for his Hawaii condominium, instead of using the invested funds as promised. He mixed the ICO investors’ funds with his personal funds.
On July 25, 2022, Stollery pleaded guilty to one count of securities fraud and will serve four years and three months in custody despite facing a maximum sentence of 20 years in prison.
The report of Stollery’s sentence has received mixed reactions from the crypto community. While some express satisfaction, others think the verdict is insufficient for his role in the $21 million fraud. Some anticipate similar sentences for other criminals in the crypto world.
Am expecting more of this in this space. Alot of criminal in nice suits and money backed marketing department.
Am LUNAtic by my decentralisation visions but if Do kwon is guilty of corruptio n(which i doubt),then he shld face d music. https://t.co/jMWxwWuRaF
— atority.????????(????,????) (@atority_DeFi) March 27, 2023
Another community member named Cryptotunities suggested that Sam Bankman-Fried, Do Kwon, and Michael Stollery share a ‘cozy 2 x 4’ cell for 50 years while they reminisce about how they brilliantly contributed to society.
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