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   1017

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.

Mt. Gox CEO to be Found Guilty of Falsifying Docs

Mark Karpeles has a suspended term of four years ahead to prove his reliability and to avoid a real imprisonment
15 March 2019   120

The Tokyo District Court convicted the former CEO of the Mt.Gox bitcoin exchange, Mark Karpeles, of falsifying documents and sentenced him to two years and six months in prison. Nevertheless, Karpeles has a suspended term of four years ahead to prove his reliability and to avoid a real imprisonment. Reported by The Block.

Note that the prosecutor's office demanded 10 years in prison, however, on charges of embezzlement and violation of corporate law, Karpeles was found not guilty.

Karpeles and his lawyers intend to assess the situation and develop a strategy for action on the charges.

Earlier, the Illinois court rejected the petition of the lawyers of the former head of Mt.Gox to suspend the proceedings against him in the United States. So, American investors Gregory Green and Anthony Motto demand that Carpeles be personally responsible for the loss of their investments.

Once the largest Bitcoin exchange Mt. Gox crashed in early 2014. This happened after the information appeared about its alleged hacking and theft of 800,000 BTC ($ 480 million at that time). In December last year, Carpeles, during his closing speech at a Tokyo court, called himself innocent of the events that caused the millions of client losses and the company's collapse.