Jon Montrol, the creator of the non-existent cryptocurrency exchange BitFunder and deposit service WeExchange, was sentenced to imprisonment for 14 months. He was convicted of securities fraud and obstruction of the investigation. Montrol will serve a prison sentence for transferring other people’s funds without the knowledge of investors, as well as for lying to FBI and SEC officers.
Manhattan U.S. Attorney Geoffrey S. Berman said:
“Jon Montroll lied to his investors and, after his lies caught the attention of the SEC, lied to them, too. The sentence he received serves as a reminder that this Office will not overlook those who violate their obligation to be honest with investors and the regulators working to protect them.”
Recall that in 2013 it was announced that BitFunder software was hacked, which led to the theft of more than 6000 BTC. Montrol was unable to return the lost funds to investors and begun to lie to them. This attracted the attention of SEC employees, but Montrol continued to stand his ground, but it was soon discovered that he used WeExchange as his personal bank:
“Montrol exchanged numerous bitcoins taken from WeExchange into United States dollars, then spent those funds on personal expenses, such as travel and groceries.”
We want to remind: