Copy link
Increase text size
Decrease text size
Link copied

Securities fraud lands Bitfunder operator in prison for 14 months

Bitcoin.Max Pixel/Max Pixel

Sun, 14 Jul 2019, 13:00 pm UTC

Jon Montroll, the CEO of Bitfunder pleaded guilty to charges including securities fraud and obstruction of justice. As a result, he will be spending 14 months behind bars in a recent ruling by Judge Richard M. Berman of the New York Southern District Court. Along with the imprisonment sentence, Montroll is also facing three years of probation.

As to why Montroll managed to earn the ire of the courts to such an extent, it is due to the deception that he played on consumers and officials from the government, Coindesk reports. This was with regards to the two bitcoin exchange platforms that he operated, including WeExchange and Bitfunder.com.

Hackers were basically able to penetrate the security protocols in place and as a result, 6,000 bitcoins were stolen. Instead of reporting the theft to the authorities and being transparent with investors, however, Montroll chose to keep quiet about the incident. Making matters worse is how he presented a thriving business to both the investor and even the investigators looking into his company.

Finally, in July 2018, Montroll pleaded guilty to the charges of securities fraud and for obstruction of justice by basically lying to the FBI. During that event, U.S. Attorney Geoffrey S. Berman summed up Montroll’s crimes.

“Jon Montroll lied to his investors and, after his lies caught the attention of the SEC, lied to them, too. The sentence he received serves as a reminder that this Office will not overlook those who violate their obligation to be honest with investors and the regulators working to protect them,” Berman said.

This represents only one of a number of recent convictions with regards to crimes involving cryptocurrency. Both perpetrators and operators of exchanges in a questionable manner have been sentenced to prison. With the increase in regulations and law enforcement understanding of cryptocurrency, however, such cases are expected to go down in the future.

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
  • alextechlead
  • 2019.09.09 18:19:58
I have had some amazing experiences with crypto deals but I’ve also had some terrible deals as well. Luckily I have found my favorite and most reliable services to use when it comes to dealing with everything including crypto, businesses, exchanges and trading. In the scenario you do lose money all hope is not lost, there are tons of ways to get your money back.

I offer my services helping people get back money they have lost on various deals, and the stories that get sent to me daily just let me know we have a long way to go. Most people feel all hope is lost and they are beyond impressed when we succeed. If you have similar stories of how you lost money and how you have tried to retrieve please send them to me.


Alex TechLead
[email protected]
  • 1
  • ·
  • 0
More
  • Bitcoin (BTC) $7,073.39 (-0.45%)
  • Ethereum (ETH) $141.51 (-0.32%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Bitcoin Cash (BCH) $204.72 (-0.52%)
  • Litecoin (LTC) $43.03 (-1.79%)
  • Bitcoin (BTC) $7,073.39 (-0.45%)
Dec 14, 2019 (Saturday)
05:44
Darknet marketplace Hydra launching an ICO on Dec.16 to fund its global expansion
Dec 13, 2019 (Friday)
12:50
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
12:49
Crypto Technicals: Major Cryptocurrency Daily Technical Outlook
11:25
Crypto Technicals: BCH/USD edges above 5-DMA, near-term upside likely on break above 20-DMA (211.74)
11:24
Terra launches stablecoin-powered payments service in Mongolia
10:37
Crypto Technicals: Ripple (XRP) edges higher from session lows at 0.2154, 'Hammer' at lows raises scope for minor gains
10:22
Korean cybersecurity firm partners with R3 for digital asset management and MPC technology
08:55
SEC charges Shopin’ founder with orchestrating ICO fraud; Accused deactivates social media, Telegram account
08:55
Crypto exchange Kraken looking for operations director to helm ‘special-purpose depository institution’
07:49
Twitter looks to blockchain to decentralize social media
07:03
Crypto Technicals: LTC/USD flashes signs of recovery, 'Dragonfly Doji' and 'Bullish Divergence' could support minor upside
06:22
ING bank developing custody project for digital assets: Report
06:18
Basel Committee on Banking Supervision mulls designing global prudential standard for crypto-assets
05:28
Franklin Templeton leads blockchain-based social impact platform’s funding round
04:58
Crypto Technicals: BTC/USD breaks above 50H MA, 'Bullish Divergence' could support further gains
04:44
TokenSoft submits transfer agent filing to the SEC; Decision to arrive in 30 days
04:33
Crypto Technicals: ETH/USD recovery lacks traction, upside capped at 5-DMA
04:33
Glencore joins Responsible Sourcing Blockchain Network for tracing cobalt
03:24
Grant Thornton releases second report on Cryptopia liquidation; Pulls back nearly $5M from various sources
03:23
Chainalysis launches compliance solution for Bitfinex amidst class-action lawsuit
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft