Categories Finance

Bitcoin fraud: BitFunder owner charged with perjury

Federal authorities arrested BitFunder owner Jon Montroll this Wednesday on charges of misleading the Securities and Exchange Commission (SEC) in relation to a cyber attack that led to the theft of 6,000 bitcoins. The SEC has separately charged Montroll with fraud.

Montroll, who hails from Texas, operated WeExchange Australia Pty Ltd., a bitcoin depository and exchange service, along with BitFunder.com, a cryptocurrency stock exchange. In 2013, hackers stole 6,000 bitcoins from WeExchange by exploiting a vulnerability in BitFunder’s programming code. The stolen bitcoins are worth around $70 million today.

Prosecutors said that Montroll had lied to the SEC that the hackers were unsuccessful and also provided false evidence regarding the availability of bitcoins to BitFunder users. Montroll also transferred his own bitcoins into WeExchange to cover up the losses.

Manhattan U.S. Attorney Geoffrey Berman stated that Montroll repeatedly lied in sworn testimony and misled SEC staff to avoid taking any responsibility for the loss of thousands of his customers’ bitcoins.

The stolen bitcoins are worth around $70 million today

The SEC alleged that the now-defunct BitFunder had operated as an unregistered online securities exchange. The agency also said that Montroll had deceived his users by misusing their bitcoins and also withholding information about the hack that involved the theft of over 6,000 bitcoins.

The Department of Justice is charging Montroll with two counts of perjury and one count of obstruction of justice which combined would entail a prison sentence of 30 years.

Most Popular

Infographic: How Kohl’s Corporation (KSS) performed in Q1 2024

Kohl’s Corporation (NYSE: KSS) reported first quarter 2024 earnings results today. Net sales decreased 5.3% year-over-year to $3.2 billion. Comparable sales decreased 4.4%. Net loss was $27 million, or $0.24

Best Buy Co. (BBY) Q1 2025 earnings rise; comparable sales down 6.1%

Best Buy Co., Inc. (NYSE: BBY), a leading retailer of consumer electronics and related merchandise, reported higher profit for the first quarter of 2025, despite a decline in revenues. First-quarter

HRL Earnings: Key quarterly highlights from Hormel’s Q2 2024 financial results

Hormel Foods Corporation (NYSE: HRL) reported its second quarter 2024 earnings results today. Net sales decreased 3% year-over-year to $2.89 billion. Net earnings attributable to Hormel Foods Corporation were $189.2

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top