Head of BitFunder Exchange Arrested by Decision of US Court

The founder of the BitFunder crypto-exchange and the WeExchange depository, John Montroll, was arrested by a decision of the American court. According to a statement by the Securities and Exchange Commission ( SEC ), the BitFunder Exchange offered its users securities that were not registered, and money from their sale was not used for its intended purpose.

In mid-2013, cybercriminals managed to break off almost 6,000 bitcoins with the WeExchange. In November of the same year, Montroll stated under oath that the hacking was not successful and the vulnerability of the platform was eliminated in a matter of hours. As a confirmation, he showed a screenshot on which the balance of the exchange was displayed: in the purse of WeExchange was a custom 6679.78 bitcoins.

As it turned out later, the snapshot was a fake, because Montroll tried to hide the hacking by tracking, and then replenishing the missing funds with his bitcoins. As a result, there is a double perjury, and this is fraught with a prison sentence of up to five years for each such case plus 20 years for obstructing the justice system. In addition, the court intends to consider the SEC’s lawsuit on violation of the Securities Act by the exchange.

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