Skip to main content

Bitcoin Platform Operator Pleads Guilty to Lying About Hack

posted onJuly 23, 2018
by l33tdawg
Bitcoin
Credit: Bitcoin

The operator of two defunct cryptocurrency services pleaded guilty to charges that he stole his customers’ deposits and lied to investigators after hackers stole thousands of bitcoins from the services.

Jon E. Montroll, 37, of Saginaw, Texas, faces as long as 20 years in prison for securities fraud and obstruction of justice after entering his plea before U.S. Magistrate Judge James L. Cott in New York Monday. Montroll operated two online services -- WeExchange, which served as a bitcoin depository and currency exchange service, and BitFunder, which enabled the purchase and trading of virtual shares of business entities that listed on the platform.

Prosecutors said Montroll converted a portion of bitcoins belonging to WeExchange customers into U.S. dollars and spent them on travel and groceries, among other personal expenses. Then , during the summer of 2013, hackers exploited a weakness in BitFunder’s programming code to steal about 6,000 Bitcoins -- leaving Montroll without enough to cover what he owed to users.

Source

Tags

BitCoin Security Industry News

You May Also Like

Recent News

Friday, November 1st

Tuesday, July 9th

Wednesday, July 3rd

Friday, June 28th

Thursday, June 27th

Thursday, June 13th

Wednesday, June 12th

Tuesday, June 11th

Friday, June 7th

Thursday, June 6th