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   564

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.

US Authorities to Sell $4.3M Worth Seized BTC

As reported, the Bitcoins were seized during different federal investigations
18 October 2018   96

The US Federal Penitentiary and Marshals Service has announced an auction, during which 660 Bitcoins will be sold, previously confiscated by law enforcement agencies. The current market value of the coins put up for sale is about $ 4.3 million, CoinDesk reports.

Bitcoins offered for sale were seized during federal criminal, civil and administrative investigations.

The auction will be held on November 5, and to participate in it, you must register no later than October 31 and make a deposit of $ 200,000.

The trades will be divided into two parts and include the sale of six blocks of 100 BTC and one more block of 60 BTC. Auction participants will not be able to view other people's rates or change their own.

The Office clarified that part of the assets put up for auction includes Bitcoins, which were seized during the recent investigations into the cases of the traders Teresa Tetley and Thomas Mario Costanzo. Teresa Tetley was sentenced in July to a year in prison on charges of trading in cryptocurrency without the necessary license and laundering money obtained from drug trafficking.

The Marshals do not report which part of the bitcoins seized from Tetley and Costanzo is put up for auction, however, it was previously known that 40 BTC were withdrawn from the first, and 80 BTC from the second.

Two previous major auctions for the sale of confiscated bitcoins were held in the United States in January and March of this year. In the first case, 3813 BTC was sold, in the second - 2170 BTC.