 Solution

A subgroup of the Möbius group ${\mathrm{PSL}}_2(\mathbb{C})$ is a discrete subgroup when the identity is isolated in its induced topology, equivalently every group element is isolated. We prove the compact-set criterion for a properly discontinuous group action: for every compact $K\subset {\mathbb{H}}^3$, only finitely many $g\in G$ satisfy $gK\cap K\ne \varnothing$.

Fix an origin $o$ and take $K\subseteq \overline{B}(o,R)$. If $x\in K$ and $gx\in K$, the triangle inequality and invariance of hyperbolic distance giveThe set of Möbius isometries with $d(o,go)\le 2R$ is compact. To see this explicitly, represent an isometry by a determinant-one complex matrix and use singular-value decomposition:The compact factors fix $o$, and the diagonal factor moves it hyperbolic distance $s$, as seen from the vertical dilation by $e^s$ in upper half-space. Thus the bounded-displacement set is the continuous image of $\mathrm{SU}(2)\times [0,2R]\times \mathrm{SU}(2)$, modulo central signs.

By the allowed closedness fact, its intersection with $G$ is a closed discrete subset of a compact space, hence finite. Otherwise an infinite sequence would accumulate in that intersection, contradicting isolation of its limit point. This proves every discrete Möbius subgroup acts properly discontinuously on hyperbolic three-space. Finite stabilizers are allowed; discreteness alone does not imply a free action.