Jon Montroll, the founder of the "stock" bitcoin exchange BitFunder, which ceased to exist in 2013, pleaded guilty to fraud with securities and giving false evidence to the investigation. This is reported by Reuters.
US law enforcement detained the 37-year-old Jon Montroll and charged him with fraud, as well as creating an exchange without a license in February this year.
According to investigators, in July 2013 Jon Montroll, with the help of BitFunder, as well as partner's crypto exchange sites WeExchange and Australia Pty Ltd, sold shares of business companies for bitcoins, and then took all the funds received for personal use.
At the same time, he began to attract investments from platform users, offering them the security Ukyo.Loan. Montroll promised investors that they will receive daily interest and will be able to redeem their shares at any time.
However, in 2013, the WeExchange site was the victim of a hacker attack, as a result of which the attackers stole about 6,000 bitcoins. After hacking, Montroll could not continue to pay the promised funds to investors Ukyo.Loan, as well as customers of WeExchange and BitFunder. Nevertheless, he continued to attract new investors without telling them about the hacker attack.
Montroll was also accused of giving false testimonies under oath. According to representatives of the US Department of Justice, he stated about the incorrect number of bitcoins available to BitFunder and WeExchange users.
US District Judge Richard Berman postponed sentencing in the Motrol case indefinitely.