CEO of Titanium Blockchain Sentenced for $21M Cryptocurrency Fraud Scheme


The CEO and founding father of Titanium Blockchain Infrastructure Companies Inc. (TBIS) was sentenced at this time to 4 years and three months in jail for his position in a cryptocurrency fraud scheme involving TBIS’s preliminary coin providing (ICO) that raised roughly $21 million from traders in the USA and abroad.

In keeping with courtroom paperwork, Michael Alan Stollery, 54, of Reseda, California, touted TBIS – a purported cryptocurrency funding platform – as a cryptocurrency funding alternative, luring traders to buy “BARs,” the cryptocurrency token or coin supplied by TBIS’s ICO, by way of a collection of false and deceptive statements. Though he was required to take action, Stollery didn’t register the ICO concerning TBIS’s cryptocurrency funding providing with the U.S. Securities and Change Fee (SEC), nor did he have a legitimate exemption from the SEC’s registration necessities.

To entice traders, Stollery falsified elements of TBIS’s white papers, which purportedly supplied traders and potential traders a proof of the cryptocurrency funding providing, together with the aim and expertise behind the providing, how the providing was totally different from different cryptocurrency alternatives, and the prospects for the providing’s profitability. Stollery additionally planted faux consumer testimonials on TBIS’s web site and falsely claimed that he had enterprise relationships with the Federal Reserve and dozens of distinguished firms to create the false look of legitimacy. Stollery didn’t use the invested cash as promised however as a substitute commingled the ICO traders’ funds along with his private funds, utilizing no less than a portion of the providing proceeds for bills unrelated to TBIS, resembling bank card funds and the cost of payments for his Hawaii condominium. 

Assistant Lawyer Normal Kenneth A. Well mannered, Jr. of the Justice Division’s Felony Division; Assistant Director Luis Quesada of the FBI’s Felony Investigative Division; and Appearing Particular Agent in Cost Cory Nootnagel of the Workplace of Inspector Normal (OIG) for the Board of Governors of the Federal Reserve System and the Shopper Monetary Safety Bureau, Western Area, made the announcement.


The FBI Los Angeles Discipline Workplace and the Federal Reserve Board OIG Western Area, San Francisco Workplace investigated the case.

Trial Attorneys Tian Huang and Andrew Tyler of the Felony Division’s Fraud Part prosecuted the case.

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