Crypto CEO is sentenced to 14 months in prison for fraud
Jul 13, 2019
The CEO of the defunct bitcoin exchange Bitfunder and Weexchange, Jon Montroll, has been sentenced to 14 months in prison for securities fraud and obstruction of justice. This according to a statement from the Southern District of New York, Coindesk reports.
Montroll is convicted of deceiving investors by transferring funds without their knowledge or consent. He also used Weexchange as his personal bank.
“Montroll exchanged numerous bitcoin taken from Weexchange into United States dollars, then spent those funds on personal expenses, such as travel and groceries”, it says in the statement.
Lied to authorities
In addition, during the investigation, Montroll also lied to agents of the American FBI and the US Securities and Exchange Commission, SEC, something he has also pleaded guilty to.
“Jon Montroll lied to his investors and, after his lies caught the attention of the SEC, lied to them, too. The sentence he received serves as a reminder that this office will not overlook those who violate their obligation to be honest with investors and the regulators working to protect them”, Manhattan US Attorney Geoffrey S. Berman said in the statement.