фото показано с : blokt.com

BitFunder is one of the biggest scams on the news right now as the founder and operator of the platform, Jon E. Montroll, has pleaded guilty to charges of obstruction of justice and securities fraud on Monday, July 23.

For BitFunder, the problems started in February this year when the Securities and Exchange Commission (SEC) charged the platform and Montroll with operating an unregistered securities exchange. The Bitcoin-dominated platform was operating outside the legal purview of the federal securities law, making the activities of the exchange unlawful. In addition to this, SEC charged the platform with defrauding the investors. The two were also charged with making false and misleading statements related to an unregistered securities offering.

The federal watchdog alleges that Montroll not just misappropriated Bitcoins on his platform but also failed to disclose the news of a cyber attack, because of which 6,000 Bitcoins were lost, which are worth over $46 million. Montroll didn’t stop here. He also sold unregistered securities on the platform and misappropriated those funds as well.

Federal prosecutors said in a statement that 37-year-old Montreal pleaded guilty to the charges of obstruction of justice and securities fraud before US Magistrate Judge James Cott in Manhattan. The maximum penalty for each is 20 years of imprisonment. Montroll’s lawyer, however, has not yet released any official statement on the matter.

The prosecutors claim that he ran BitFunder.com, which acted as a virtual exchange for Bitcoins, and WeExchange Australia Pty Ltd., which functioned as a Bitcoin depository and exchange. On BitFunder, users can sell virtual shares of business enterprises in exchange for Bitcoins. Between the launch of BitFunder in 2012 and July 2013, Montroll sold WeExchange users’ Bitcoins for US dollars and spent them for his personal use. In July 2013, he sought investments in Ukyo.Loan, a security named after his screen name Ukyo. He promised daily interest and share redemption anytime to users.

The same year, hackers were able to withdraw 6,000 Bitcoins from WeExchange. Thereafter, he was unable to pay the users of the two exchanges, as well as the investors of Ukyo.Loan.

Users, as well as business owners, can take lessons from his story about the legitimate use of Bitcoin and finding safer investment platforms.

Bitfunder Operator Pleads Guilty on Fraud Charges was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

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