FAQ
What is the current status of the case?
Mike is scheduled to report to the Federal Prison Camp in Lewisburg, PA in mid-November 2024 to serve a 45-month sentence. The 45-month sentence is under appeal, but the appeals process is long and arduous.
How can I help?
Please spread the word about Mike and other victims of lawfare to people in power in the Trump administration. They are the only ones that can put a permanent stop to this madness!
Outside of prison, what other penalties have Mike and his company already faced?
Mike Personally
$260k civil fine ($22k has already been paid), which accrues $15k in interest yearly
$89k of criminal restitution (under appeal)
Lifetime ban from the financial services industry
Lifetime ban as a Director or Officer of a company
Lifetime “Bad Actor” designation, prohibiting him from investing in companies
Lifetime ban from voting
Lifetime removal of god-given 2nd Amendment right to bear arms
Destruction of 12.5% of HYDRO tokens that were worth $20 Mil in 2018
Closure of most bank accounts and ban on brokerage accounts and public stock investing
Limited ability to get loans, credit cards, and enter into rental agreements
Failure on any application that requires a background check (e.g. Mike can’t even drive an Uber)
Confiscation of U.S. passport
3-years of probation, with many restrictions, after the 45-month prison sentence
Hydrogen
$2.8 Million civil fine ($750k has already been paid), which accrues $150k in interest yearly
Lifetime ban from the crypto industry
Lifetime ban from raising capital
Destruction of ~20% of HYDRO tokens that were worth $35 Mil in 2018
As you can see, sending Mike to prison for nearly 4-years on top of all this, was entirely unnecessary, and the opposite of “justice.”
How much money did Mike make from HYDRO?
ZERO. Mike owned 12.5% of HYDRO and never sold a single token. At its peak, before the SEC destroyed its value (and then blamed it on Mike to try to send him to prison), Mike held over $20 Million of HYDRO in his wallet, which in today’s prices, would be worth hundreds of millions.
HYDRO was liquid. Mike could have pressed 1-button and made millions. He made $0 instead. Why? Because he actually believed in HYDRO and wanted to use it for its intended use, not to cash out and buy five mansions and a fleet of fancy cars. Mike was forced to destroy all 12.5% of the HYDRO he owned in the voluntary 2023 SEC Settlement.
Was this a political prosecution?
Of course! They targeted Mike and his companies through two Democratic administrations. They viewed him as a threat and wanted to take him out. Mike created some of the most innovative cryptocurrency products (if crypto would have taken off, it threatened the regime) and later became a free speech advocate, conservative comedian, and conservative author that was fiercely critical of COVID policy. He intended to build a higher profile and run for office, like Vivek’s run in 2024.
Mike fought DC’s witch-hunts for years and mocked them publicly, infuriating them. When this ordeal is behind him, Mike will continue to fight for victims of lawfare, the Bill of Rights, and freedom of speech.
Why did Mike plead guilty to all charges and not go to trial?
There is a 99.6% conviction rate for Federal cases. In Mike’s case, his co-defendant went to trial and won! But, it was only on 2 of the 4 charges, so he was still sentenced to 35-months in prison. You can’t win; it’s a stacked system!
When you go to trial, it can cost millions of dollars - and, no, lawyers don’t accept credit cards. When you plead guilty, it’s much cheaper, and you are given 2-3 less points on the Federal Sentencing Guidelines. You are also seen as “taking responsibility,” which can lower a sentence.
How did the SEC/DOJ collect evidence to convict Mike?
An employee, whom Mike never met in person (and didn’t even work on HYDRO), was magically able to get in touch with one of the largest DNC linked whistleblower law firms in DC within a few weeks of working at Hydrogen. A few months later, he quit, and submitted a 21-page whistleblower report to the SEC, leaking confidential documents and communications to them. He received up to $850,000 in 2023 for his services, or 8-years of his salary. The whistleblower laws were created to go after big banks, not small startups where the founder is sleeping in the office.
Once the SEC receives a whistleblower report, they have the legal right to subpoena millions of records and collect testimony. Just ask Peter Navarro and Steve Bannon what they do to you if you ignore a subpoena. Mike refused to participate in the SEC witch-hunt testimony, invoking his 5th Amendment rights. This further infuriated them. This backdoor lawfare is the same way they targeted President Trump with the Russia collusion hoax.
Why didn’t Mike accept a plea bargain?
There was never a good faith plea bargain presented to Mike. Ask any lawyer how normal this is for a $0 white collar case!
What was Mike’s civil penalty?
After three-years of severe mental torture by the SEC, Mike voluntarily agreed to civil penalties (in April 2023) that included a $260k fine, a lifetime ban from the financial industry, a lifetime ban as a director or officer, a lifetime “bad actor” designation, destruction of all crypto in his wallet, and a 5-year ban on raising capital. This is considered a “death penalty” outcome in the civil system.
Why was a criminal case brought after the civil case?
The judge signed an arrest warrant under seal an hour after the civil penalty was voluntarily accepted, and Mike was raided by six armed FBI agents at daybreak 2-business days later. This is extremely rare in cases like this, and not a single other co-defendant was arrested at gunpoint. They were allowed to turn themselves in, days, or weeks later.
Mike was under the impression that the civil case was the end of this ordeal, and he was ready to move on. This sneak attack should be a warning to others of how vicious, vindictive, and dishonorable these Federal agencies can be. Mike, or his lawyer, were never informed (not once) for over 8-months that the DOJ was investigating him. Ask any lawyer how normal that is in a $0 white collar case! There are mafia bosses that get better treatment!
Where will Mike be serving his prison sentence?
Mike will be housed at the Federal Prison Camp in Lewisburg, Pennsylvania. The main prison next door has housed inmates such as John Gotti, Whitey Bulger, and Jimmy Hoffa.
How can I reach Mike while in prison?
You can find instructions on the prison website here. Mike’s Register (USMS) Number is 55608-510.
Why did Mike get involved in crypto?
Mike was an original crypto pioneer, launching the first Bitcoin (BTC) wealth management product while CEO of Hedgeable, in 2014. This was when BTC was trading around $300. In 2017, like the AI fervor of today, every company was looking to add blockchain technology to their platforms. Given Hydrogen’s financial APIs, it was natural to have a blockchain component. This is why HYDRO was launched in March 2018.
What was the outcome for other co-defendants in the case?
Mike Ross: $0k earned, $260k civil penalty + lifetime bans, 45-Months in Federal Prison, $89k in restitution
Shane Hampton: $90k earned, no civil penalties, 35-Months in Federal Prison, $89k in restitution
Andrew Chorlian: $500k earned, no civil penalties, 4-months house arrest, no restitution sought by DOJ
Tyler Ostern: $50k earned, small civil penalties, 6-months house arrest, no restitution sought by DOJ
George Wolvaardt: $50k earned, no civil penalties, still a fugitive in South Africa
If the government didn’t seek fines and restitution against most of the defendants, how was there any crime committed and any victims? This is a clear violation of the law.
Why are there such disparate outcomes among co-defendants?
Because the goal of this case from the start was to create law from the executive branch and label HYDRO/crypto as a security, which would destroy the industry. This is now totally obsolete that there are dozens of crypto ETFs (e.g. securities) that were created with the SEC’s blessing. Plus, after the fall of FTX, Merrick Garland wanted to make the Democrats seem like “tough guys” that were going after crypto, to cover up for their corrupt crimes of taking Sam Bankman-Fried’s huge donations that helped them to win the 2020 election.
The DOJ doesn’t actually care about “justice” or “victims” - this isn’t 1985. They are purely a political organization. Period. Everything they do is about winning elections and sending their kids to better private schools.
Why hasn’t the DOJ gone after the thousands of scam crypto projects?
Because they don’t care.
Are you appealing the case?
Yes, we have a limited appeal of the sentencing enhancements accepted by the judge. We hope the appeals court can overturn the acceptance of the 14-point loss enhancement, thus dramatically reducing Mike’s sentence.
What were some of the reasons given by the judge for the harsh sentence?
The Obama appointed judge specifically pointed out Mike “ignoring doctors” - a veiled snipe at Mike’s anti-COVID jab and mask stance. She also specifically pointed to Mike’s company getting a $80,000 fine from the SEC for frivolous violations 9-years in the past, and somehow using that as a way to show that Mike needed to be punished as a repeat offender.
Remember, nearly every software company in business for 5+ years has been fined by the SEC, CFTC, FINRA, FTC, or DOJ, sometimes for hundreds of millions, or even billions of dollars! The CEO of the company is never raided at gunpoint and sent to prison, even if the fines are 1,000x that which Mike faced. An $80,000 fine from a three-letter government agency is like getting a speeding ticket.
Outside of the Federal three-letter agencies, Mike’s companies had never faced a single lawsuit from any city, state, or other regulatory body in 15-years. No sexual harassment lawsuits. No complaints. No customer suits. Nothing. Ever. Mike was a first-time offender, who had no points on his license, no parking tickets, and not a single open legal matter.
How much money did others involved in the case make?
Because HYDRO started with a value of $0 (it was given away for free), users who bought it early made hundreds of millions of dollars.
The three-month employee of Hydrogen, turned whistleblower, that worked with the DNC linked law firm, made up to $850,000!
Andrew Chorlian, the lead developer on HYDRO, exit scammed in 2019, crashed the value of HYDRO (it never again reached the same value after he started selling) and made $500,000. He turned this $500,000 into $15 Million in NBA Top Shot (WSJ Article Here), and a later NFT startup worth hundreds of millions. He was rewarded with a probationary sentence, no civil penalty, and no restitution - i.e. he got to keep all $500,000 of HYDRO he sold!
Lawyers made millions, and prosecutors will become partners at prestigious law firms.
Mike made -$500,000.