Bitcoin Exchange Operator Lies About Hack, Pleads Guilty
Jon Montroll, an operator previously employed at two cryptocurrency exchanges has confessed to his crimes in front of the court, pleading guilty after being charged with lying to authorities about a hack that resulted in thousands of BTC stolen and that he was stealing his own clients deposited coins.
John, a 37-year old from Texas maybe facing charges that could lead to a 20-year sentencing after being charged with fraud and interfering with official investigations. Judge James Cott was the presiding judge and heard Montroll plead guilty to the charges against him. John Montroll was employed at two different online service providers, WeExchange and BitFunder.
WeExchange is a digital currency depositing service as well as an operational exchange. BitFunder allowed customers to buy and trade possessed shares of companies that were registered to its platform.
According to reports, Montroll illegally took a small sum of Bitcoin from customers operating on WeExchange and converted them into US fiat, using them for personal affairs like traveling. Following that, BitFunder was hacked in 2013 after criminals discovered a vulnerability within the system and managed to claim 6000 BTC.
Montroll lied about the hack to users and authorities alike by not reporting the illegal activities and instead continued operating “normally” and through promoting the latter, he managed to gain almost 1000 Bitcoins from unsuspecting customers. During the SEC’s investigation, he reported misleading information via a screenshot to show an altered Bitcoin count on the platform and lied under oath about when the hack occurred.