Montroll’s Plea Bargain to Take Effect in Securities Fraud Case

According to a financial news portal, Montroll’s legal defender presented the courts with a plea bargain that will take effect on July 23rd. The plea bargain expedited the court’s rulings in the case.

What Montroll Was Charged With

Montroll was charged with using his exchange platform to embezzle cryptocurrency investors and was charged with several counts of trading unlisted securities.

Montroll was also charged with obstruction of justice as he failed to notify the authorities with a hacking activity on WeExchange (another business he owned) in 2013. The hack resulted in the theft of 6000 bitcoins which is now equivalent to 68.7 million US Dollars. He then tried to cover up the hack by transferring some of his own cryptocurrencies.

According to the FBI assistant director-in-charge, Montroll lied to the SEC while under oath which is considered to be a deliberate offense. And, he tried to hide the consequences of the hack that shed light on his unreliable programming codes. Also, he went too far to prove that the bitcoins’ balance on BifFunder was enough to cover the debt to investors.

Since this plea bargain is expected to be in effect next week, Montroll should reach a deal with the SEC within the coming three months.

2 years ago

Start Weekly Digest

Similar news