The BitFunder and WeExchange Operator Jon Montroll’s Restitution Amount
The exact restitution to be paid by Jon Montroll, the operator of the shuttered BitFunder and WeExchange Bitcoin security has been determined. It is according to Judge Richard M. Berman of the New York Southern District Court.
Montroll operated WeExchange in Australia, which was a Bitcoin depository and operation service. He also managed Bit funder, a security token platform that allowed users to sell shares in exchange for cryptocurrencies.
In 2013, hackers broke into the BitFunder and stole 6,000 bitcoins – a sum that was at the time worth around $775,000. Jon didn’t alert the authority; instead, he tried to repay the client’s funds using his own money. Later, after the cyberattack, BitFunder users began experiencing difficulties in withdrawing their funds from the site. He shortly shut down the site after the incidence.
He also deceived investors in security he devised, the UKYo.loan. He allegedly promised the purchasers of Ukyo.loans products that they would receive daily interest on invested money and redeem at face value anytime upon request. More than 200 customers suffered the loss.
Authorities also claim Montroll lied in court, when he,
“…provided false and misleading answers to certain questions, which include his discovery time of the exploit.”
Early this year, he got sentenced to 14 months behind bars for one count of securities fraud and one count of obstruction of justice.
Montroll is charged with violation of anti-fraud and registration provisions of the federal securities laws. He seeks permanent injunctions and disgorgement plus interest and penalties.
He will have to pay $155,572 to the victims of his scheme who he defrauded in connection with the purchase and sale of Ukyo.Loan securities. He was also sentenced to 14-month imprisonment and will serve an additional three years’ probation.