Jon Montrol, the operator of defunct bitcoin-denominated trading platform BitFunder and WeExchange deposit service, was sentenced for securities fraud and obstruction of justice, according to a statement from the Southern District of New York.
Montrol, of Saginaw, Texas, also known as Ukyo, will serve 14 months in prison for defrauding investors of his "Ukyo.Loan" scheme, transferring funds without investor's knowledge or consent, and lying to Federal Bureau of Investigation and Securities Exchange Commission agents during their investigation.
In July 2018, Montrol pleaded guilty for such activities.
In July 2013, BitFunder's software was said to be hacked, enabling the theft of 6,000 bitcoin from Montrol's companion fiat-to-crypto platform, WeExchange.
Per the DOJ's statement, Montrol allegedly failed to communicate the lost monies with investors or regulatory authorities.
Montrol repeated similar claims to the FBI and "Provided the SEC with a falsified screenshot" of investor's holdings as they began to investigate the exploit.
During the investigation it was found Montrol used WeExchange as a personal bank.
"Montrol exchanged numerous bitcoins taken from WeExchange into United States dollars, then spent those funds on personal expenses, such as travel and groceries."
Shortly before BitFunder shuttered, Montrol began offering a new product, Ukyo.Loan, described as a "Round-about investment." Attorneys also noted that Montrol referred to the investments as "a personal loan."
Despite his businesses' insolvency, Montrol continued to advertise Ukyo.Loans netting him 978 bitcoin.
CEO of BitFunder Exchange Gets 14 Months in Prison for Fraud, Obstruction
gepubliceerd op Jul 12, 2019
by Coindesk | gepubliceerd op Coinage
Vermeld in dit artikel
CoinDesk's On Tap Meetup With CoinDesk Japan Is Happening Tonight In Tokyo
We'll see you tonight at our Tokyo On-Tap event produced in cooperation with the amazing team at CoinDesk Japan.
BNB Gains 23% Plus Other Top-5 Cryptos This Week: LINK, HT, XRP, TRX
Though the bulls pushed the price above $2.8498 during the week, they have not been to sustain the breakout.
Privacy Coin Zcash Community to Develop Wrapped Token for Ethereum
The privacy-focused cryptocurrency Zcash is seeking access to Ethereum's decentralized finance ecosystem.
Telegram Responds to Investors on SEC Action, Hearing Set for Oct. 24
Telegram Open Network developers responded to its investors after American regulators abruptly announced that its $1.7 billion token sale was illegal.