Friday, November 27, 2020
coincasso bitcoin exchange banner
Home News Ethereum News BitFunder CEO sentenced to 14 months in prison!

BitFunder CEO sentenced to 14 months in prison!

Jon Montrol, CEO and co-founder of the now-defunct BitFunder exchange platform, was sentenced to 14 months in prison, as stated in a statement from the South District of New York. The reason is him fooling the investors and lying during the investigation.

Prison, supervision and fine

The 38-year-old Montrol from Texas, also known as Ukyo, lied to investors by conducting transactions without their knowledge. Then during the investigation he lied to the FBI and the SEC (Securities Commission). Finally, a few days ago, the CEO of Bitfunder pleaded guilty. In addition to imprisonment, he paid more than $167,000 in compensation and will be subject to additional three-year supervision.

Theft from 6 years ago

In 2012, Montrol became an operator of two interconnected services: WeExchange (deposit service) and BitFunder.com (trading platform). Users needed accounts on both platforms. At the end of July 2013, the BitFunder exchange was hacked, enabling the theft of 6,000 bitcoins (worth approximately $775.000) from the accompanying WeExchange platform. Hackers took control of the platform for about a month. Several months after the attack BitFunder users began experiencing difficulties with the withdrawal of funds. Soon after, Montrol closed the exchange platform. According to the statement of the Justice Department, Montrol did not inform investors or regulatory authorities about lost funds. Instead, he continued to promote his platforms, collecting even more money from investors. Later, he provided the SEC with a fake screenshot of investors’ resources.

Bitcoins for personal matters

Additionally, during the investigation it was found that the American used WeExchange as a personal bank. He was to replace the numerous bitcoins taken from WeExchange into US dollars and then spend them on personal expenses, such as travel and… groceries.
What’s more, shortly before closing BitFunder, Montrol opened a financial system called Ukyo.Loan. Despite the insolvency of the company, Montrol advertised it, earning 978 Bitcoins on it.
Prosecutors demanded a stricter sentence. Montrol will be at large until the end of October, when he will start his post in Texas.

This is not the only case

Let us recall that in the history of the cryptocurrency market there were many instances of exchange platforms failures. Recently, the Polish Bitmarket.pl fell under suspicious circumstances, and we wrote more about the collapse of exchange platforms here.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Sidebar Widget
USD
EUR
PLN
RUB
bitcoinBitcoin (BTC)
$ 17,115.66
ethereumEthereum (ETH)
$ 522.75
tetherTether (USDT)
$ 1.00
rippleXRP (XRP)
$ 0.548227
bitcoin-cashBitcoin Cash (BCH)
$ 270.93
litecoinLitecoin (LTC)
$ 71.56
tronTRON (TRX)
$ 0.029593
moneroMonero (XMR)
$ 117.20
dashDash (DASH)
$ 94.11
eosEOS (EOS)
$ 2.96
dogecoinDogecoin (DOGE)
$ 0.003305
bitcoinBitcoin (BTC)
14.371,93
ethereumEthereum (ETH)
438,95
tetherTether (USDT)
0,839695
rippleXRP (XRP)
0,460343
bitcoin-cashBitcoin Cash (BCH)
227,50
litecoinLitecoin (LTC)
60,09
tronTRON (TRX)
0,024849
moneroMonero (XMR)
98,41
dashDash (DASH)
79,02
eosEOS (EOS)
2,49
dogecoinDogecoin (DOGE)
0,002775
bitcoinBitcoin (BTC)
64,155.31
ethereumEthereum (ETH)
1,959.44
tetherTether (USDT)
3.75
rippleXRP (XRP)
2.05
bitcoin-cashBitcoin Cash (BCH)
1,015.54
litecoinLitecoin (LTC)
268.23
tronTRON (TRX)
0.110925
moneroMonero (XMR)
439.31
dashDash (DASH)
352.76
eosEOS (EOS)
11.10
dogecoinDogecoin (DOGE)
0.012388
bitcoinBitcoin (BTC)
1,296,206.55
ethereumEthereum (ETH)
39,589.01
tetherTether (USDT)
75.73
rippleXRP (XRP)
41.52
bitcoin-cashBitcoin Cash (BCH)
20,518.12
litecoinLitecoin (LTC)
5,419.40
tronTRON (TRX)
2.24
moneroMonero (XMR)
8,875.81
dashDash (DASH)
7,127.16
eosEOS (EOS)
224.17
dogecoinDogecoin (DOGE)
0.250295
Sidebar Post
coincasso bitcoin exchange banner

Latest News

CBDC becoming more and more popular

More and more countries are planning and developing the emission of their own crypto. Lithuania announces the launch of its CBDC in July, while...

Bitcoin versus gold, what is a better investment?

Since the global COVID-19 pandemic, people have been looking for an alternative to keeping their savings in their domestic currencies. Some of them choose...

The Medical University of California forced to pay the ransom

Hackers hacked into Medical University computers and demanded a ransom for unlocking the data. After not very fruitful negotiations, the hackers received 116.4 BTC. A...

Blockchain e-voting system was attacked

Bitfury working for the Russian government was attacked at the weekend. Are innovative solutions safe? Problems in the Russian voting system  The Russian system of voting...

Crypto-powered online game tournaments are the future of this market

The Counter-Strike stars will soon be taking part in a cryptographic tournament, while fans will be able to bet on the score with VRA...