BitFunder Owner Arrested Following FBI Investigation


BitFunder Owner Arrested following the joint investigation by the Federal Bureau of Investigation (FBI) and the Securities and Exchange Commission (SEC). The US Justice Department has published the charges against the owner of BitFunder, also known as “Ukyo.” 

22 February, AtoZForex BitFunder is a long-defunct Bitcoin-denominated stock exchange. According to the US Attorney’s Office Southern District of New York, the owner of BitFunder, Jon Montroll, has been arrested.

BitFunder Owner Arrested Following FBI Investigation

The US Justice Department has published the charges against the owner of BitFunder, also known as “Ukyo.” The charges are following the investigation that has been carried out with the help of the Federal Bureau of Investigation (FBI) and the Securities and Exchange Commission (SEC).

The US SEC is seeking civil charges against Montroll in a separate act. The regulator has alleged that Mr. Montroll has operated an unregistered securities exchange and defrauded investors. This Wednesday, Montroll was arrested, according to the statement from the US Attorney’s Office Southern District of New York.

The detailed information on the cases appears to be dated back to the time when stock exchanges for cryptocurrency firms were a common practice. BitFunder has been shut down in 2013. It has been serving as a kind of the supporting entity for the cryptocurrency exchange WeExchange.

SEC Accuses Montroll of misleading the regulator

The complaint from the Department of Justice stated that BitFunder was the target of a hacking effort. It has allowed the attackers to credit themselves funds. The action has led to the withdrawal of almost 6,000 bitcoins from WeExchange.

Following on this, the prosecutors believe that in November 203, Montroll “provided sworn testimony to the SEC’s New York Regional Office in connection with their investigation into the Exploit and BitFunder’s activities.” As a part of that testimony, Montroll has submitted a balance statement, which mirrored “the total number of bitcoins available to BitFunder users in the WeExchange Wallet as of October 13, 2013.”

However, according to the US Justice Department, this balance sheet statement was “a misleading fabrication.”

In addition, SEC has also accused Montroll of misleading the regulator after being confronted by the investigators.

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