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: Highlights of DocuSign’s (DOCU) Q1 2024 results

DocuSign, Inc. (NASDAQ: DOCU), a leading provider of electronic signature solutions, Thursday reported first-quarter earnings. It also provided guidance for the second quarter and fiscal 2024. The company's top line

Macy’s (M): A few points to consider if you have an eye on this retailer

Shares of Macy’s, Inc. (NYSE: M) stayed in red on Thursday. The stock has dropped 22% year-to-date and 32% over the past 12 months. The retailer witnessed sales and profit

Ocean Biomedical’s scientific co-founder Dr. Jonathan Kurtis gets new patent for malaria vaccine

Ocean Biomedical, Inc. (NASDAQ: OCEA), a biopharmaceutical company focused on clinical programs in oncology, fibrosis, and infectious disease, Thursday said its scientific co-founder Dr. Jonathan Kurtis received a new patent

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