Bitcoin Stock Exchange Founder Arrested By US Government

The U.S government has arrested the founder of BitFunder, a nonexistent, bitcoin entitled stock exchange.

Following investigations by the U.S. Justice Department that confused the Federal Bureau of Investigation (FBI) and the Securities and Exchange Commission (SEC), the allegations against Jon Montroll, commonly known as “Ukyo)” were disclosed today.

In a separate action, the SEC is following civil charges against Montroll claiming that he provided unauthorized securities exchange and swindled investors.

Reports from the U.S Attorney’s Office Southern District of New York stated Montroll was taken into custody on Wednesday.

The feature of the arrest goes back to the days when bitcoin websites such as BitFunder were popular. However, in 2013, BitFunder was put to an end and it went on as a kind of partnership to cryptocurrency exchange WeExchange.

According to the statement of the Department of Justice, BitFunder was the attention of criminal activities that will provide the hackers with great amount of wealth. WeExchange went into bankruptcy when close to 6,000 bitcoins were stolen.

The prosecutor claimed that Montroll in 2013 “give a sworn statement to the SEC’s New York Regional Office in relation with their finding into the Exploit and Bit Funder’s activities.” He went on to provide details of the balance sheet statement which included the number of bitcoin users have in WeExchange Wallet as of October 13, 2013 which is about 6,700 BTC.

But according to the claims of the Justice Department on Wednesday, the balance sheet statement figures were not genuine.

There were further accusations of Montroll deceiving SEC staff following confrontation by the SEC investigators.

Even though Montroll confessed that the Balance Statement was as a result of his help in the WeExchange system, he states the success of the exploitation came to his attention following questioning from the SEC.