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, 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

I. Introduction
A. Who is Michael Alan Stollery?
B. What is Titanium Blockchain Infrastructure Services (TBIS)?
C. The Cryptofraud Scheme
II. The $21 Million Fraudulent ICO
A. Details of the Fraudulent ICO
B. Failing to Register with the SEC
III. Forging White Paper and User Recognition
A. What is a White Paper?
B. Forging the White Paper
C. User Recognition
IV. Investigations and Sentencing
A. US Department of Justice Announcement
B. Evidence Found Against Michael Alan Stollery
C. Penalty for the Cryptofraud Scheme
V. Conclusion
A. The Lessons Learned from the TBIS Cryptofraud Scheme
B. What the Future May Hold for Cryptocurrencies
C. The Importance of Regulation and Security in Cryptocurrency Trading and Investment
# Michael Alan Stollery of TBIS Sentenced to 4 Years and 3 Months in Prison for $21 Million Cryptofraud Scheme
On March 25th, the United States Department of Justice made an official announcement that Michael Alan Stollery, the founder, and CEO of Titanium Blockchain Infrastructure Services (TBIS) would be sentenced to four years and three months in prison for his part in a $21 million cryptofraud scheme. Stollery had previously admitted to conducting this fraudulent initial coin offering (ICO) in 2018 and failing to register with the United States Securities and Exchange Commission (SEC) as required. Additionally, he was charged with forging the white paper and user recognition of the TBIS token on their website.

Who is Michael Alan Stollery?

Michael Alan Stollery has been a prominent cryptocurrency investor for many years. He was born in the United Kingdom and eventually moved to the United States to further his career in finance. Stollery has been interested in cryptocurrencies since 2011 and founded TBIS in 2017.

What is Titanium Blockchain Infrastructure Services (TBIS)?

TBIS is a cryptocurrency investment platform that aims to make it easier for investors to diversify their cryptocurrency portfolios. The company offers a range of services, including access to various cryptocurrency coins and tokens. TBIS promotes itself as a secure and reliable platform for cryptocurrency management.

The Cryptofraud Scheme

In 2018, TBIS launched an ICO that aimed to raise $60 million. Stollery had promised that the proceeds from the ICO would be used to develop a decentralized exchange, a cryptocurrency wallet, and a network of cryptocurrency ATMs. However, the scheme turned out to be a fraudulent one with no real purpose of development.

The $21 Million Fraudulent ICO

Despite the promises of development stated in the white paper, the ICO only raised approximately $21 million. Additionally, it was revealed that the white paper was fraudulent, and the actual development progress was minimal. Many investors were left with worthless tokens, and TBIS did not deliver on any of its promises.

Failing to Register with the SEC

The Securities and Exchange Commission (SEC) requires all companies that conduct ICOs to register with them before proceeding. However, TBIS did not register its ICO, leading the SEC to investigate and eventually prosecute Michael Alan Stollery.

Forging White Paper and User Recognition

The white paper is an essential document that describes a company’s mission, vision, and business model. However, it was discovered that TBIS had forged their white paper, providing investors with inaccurate or misleading information. Also, the company forged the user recognition of the token on their website, leading to more fraud.

Investigations and Sentencing

The Department of Justice began investigating TBIS and Michael Alan Stollery, leading to the revelation of the fraudulent scheme. Evidence was found against Stollery connecting him to the fraud, leading to his sentencing of four years and three months in prison. The incident highlights the importance of proper regulation and security measures to safeguard investors in the cryptocurrency industry.

Conclusion

The TBIS cryptofraud scheme highlights the need for increased regulation and security in the cryptocurrency investment industry. While cryptocurrency offers potential investment opportunities, it is essential to perform due diligence and avoid fraudulent schemes. The future of cryptocurrency will undoubtedly depend on the actions taken to regulate and secure its use.

Unique FAQs

Q. What is the SEC?
A. The Securities and Exchange Commission is a government agency responsible for enforcing regulations that protect investors, maintain fair, and orderly securities markets.
Q. What is a Cryptocurrency ICO?
A. An Initial Coin Offering (ICO) is a fundraising method for cryptocurrency-based startups. It involves the sale of cryptocurrency tokens to early backers of the project in exchange for legal currency or other cryptocurrencies.
Q. What are the Risks of Cryptocurrency Investment?
A. Cryptocurrency investment involves volatility and may lead to significant losses if investments are not made thoughtfully. Cryptocurrencies are not widely regulated, and scams and frauds are prevalent. It is essential to invest wisely and seek professional advice when making investment decisions.