Cryptocurrency
Operator of shuttered bitcoin platform pleads guilty to U.S charges via @reuters
Reuters reports, “The operator of a shuttered bitcoin-denominated exchange pleaded guilty on Monday to federal charges that he defrauded investors and lied to U.S. securities regulators investigating the theft by hackers of virtual currency now worth about $46 million. “Jon Montroll, 37, pleaded guilty to securities fraud and obstruction of justice before U.S. Magistrate Judge […]
Reuters reports, “The operator of a shuttered bitcoin-denominated exchange pleaded guilty on Monday to federal charges that he defrauded investors and lied to U.S. securities regulators investigating the theft by hackers of virtual currency now worth about $46 million.
“Jon Montroll, 37, pleaded guilty to securities fraud and obstruction of justice before U.S. Magistrate Judge James Cott in Manhattan, federal prosecutors said in a statement.
“Daniel Levy, a lawyer for Montroll, had no immediate comment.
“According to prosecutors, Montroll, of Saginaw, Texas, operated WeExchange Australia Pty Ltd, which functioned as a bitcoin depository and exchange service, and BitFunder.com, which allowed users to sell virtual shares of business entities in exchange for bitcoins.
“Prosecutors said that between the launch of Bitfunder in 2012 and at least July 2013, Montroll defrauded investors by taking WeExchange users’ bitcoins for himself, selling them for dollars and spending them on personal expenses.”