CEO Bitfunder to Plead Guilty to US Charges

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.
24 July 2018   1858

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.

PBoC to Continue Anti-Crypto Propaganda

The regulator published a warning in its WeChat account called “Protection of the rights and interests of consumers of financial services”
23 March 2020   308

The People's Bank of China has returned to criticism of cryptocurrencies amid a worsening economic situation in the world.

On March 22, the regulator published a large-scale warning in its WeChat account under the heading “Protection of the rights and interests of consumers of financial services”. It describes three ways in which cryptocurrency service providers can mislead consumers.

First of all, the amount of fraud transactions with bots is serious. The average turnover rate of the top three overseas crypto currency exchanges is much higher than that of foreign licensed exchanges. Second, market manipulation exists in these exchanges where forced leveraged trading eventually causes the exchanges to explode. Third, money laundering is a big issue.

 

People's Bank of China

In addition, the Chinese Central Bank calls the opinion that Bitcoin may serve as a protective asset, erroneous. The regulator indicates its high volatility and recommends that citizens not follow the example of other investors and refuse to participate in cryptocurrency trading.