The founder of BitFunder exchange pleaded guilty to fraud

The founder of BitFunder exchange pleaded guilty to fraud

The founder of the cryptocurrency exchanger BitFunder Monday pleaded guilty to all Federal charges filed. 37-year-old John Montroll admitted before judge James Cott in Manhattan that defrauded investors and lied to financial regulators of the USA, who investigated the theft by hackers of 6 000 BTC, worth about $46 million at the current rate.

Daniel levy, a lawyer Montroll, has not yet given any comments.

According to the Prosecutor, Montroll from Saginaw, Texas, was ruled by WeExchange Australia Pty Ltd, which functioned as the custodian service bitcoins, and the exchange allowing users to sell virtual shares of commercial companies with bitcoin.

Since July 2013, Montroll cheated investors by selling users WeExchange bitcoin for Fiat currency, which is spent on personal needs.

Then, Madam, in July 2013 Montroll suggested clients to invest in securities, which he called Ukyo.Loan, promising investors a daily interest profits and the opportunity to redeem their shares at any time.

Soon, however, computer hackers broke into the exchange WeExchange and brought about 6000 bitcoins, causing Montroll could no longer to pay interest to investors Ukyo.Loan also to payout the users of BitFunder and WeExchange. However, he continued to attract investors by hiding information about the burglary.

Subsequently Montroll came under investigation of the Commission on securities and stock exchanges of the USA charged with the management of unregistered securities, misleading the users of the exchange and giving “false statements in connection with the unregistered distribution of securities.”

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