BitFunder Founder Pleads Guilty to Charges of Fraud and Obstruction of Justice

The operator of now defunct Bitcoin (BTC) stock exchange BitFunder has pleaded guilty to federal charges of obstruction of justice and securities fraudReutersreports July 23.

According to prosecutors, 37-year old Jon Montroll, also known as Ukyo, also pleaded guilty to obstruction of justice, admitting that he provided false balance statements to the U.S. Securities and Exchange Commission (SEC) in an investigation of the fake 6,000 BTC BitFunder hack in 2013.

Montroll, of Saginaw, Texas, operated BitFunder, where users could sell virtual shares of businesses for bitcoins, as well as Bitcoin exchange and depository WeExchange Australia Pty Ltd. Montroll took WeExchanges users’ bitcoins and sold them for fiat currency, which he subsequently spent on personal expenses.

In July 2013, Montroll also started soliciting investments in a security that he dubbed Ukyo.Loan, promising daily interest and an easy redemption process. However, after the 6,000 BTC hack, Montroll was unable to pay owed amounts to Ukyo.Loan investors or

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