SEC to Finalize Settlement with BitFunder Operator in October

The US Securities and Exchange Commission and the operator of the shuttered Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term ‎securities exchange BitFunder submitted a joint filing late on Friday in support of a settlement, saying the terms would be announced next month.

The exchange owner, Jon Montroll, is already spending 14 months behind bars for securities fraud and obstruction of justice. He was also fined nearly $170,000 after pleaded guilty to the charges in July 2019.

The two parties confirmed the news today and said the SEC’s staff has been awaiting the conclusion of the criminal proceeding against Montroll before finalizing its recommendation.

“The parties advised this Court that the Judge in the criminal case was going to hold a hearing on September 10, 2019 to make a restitution determination, which would finalize the criminal case,” according to the joint statement.

At the hearing, the judge requested “proposed restitution orders” from the parties in the criminal case, but he did not make a determination at that time. They further explained that the SEC and Montroll’s lawyers “ believe the determination will be made some time in October.” As such, the criminal case is still ongoing, and “the parties propose submitting the next status report on or around October 14.”

The story of BitFunder and WeExchange

Montroll operated WeExchange Australia, which operated as a bitcoin depository and exchange service, and BitFunder.com, which functioned as a security token platform that allows users to sell virtual shares of different firms in exchange for Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term.

Montroll subsequently came under investigation by the SEC which accused the owner ‎of the Bitcoin venue Ukyo of not disclosing a cyberattack on BitFunder’s system that ‎resulted in the theft of more than 6,000 bitcoins. Montroll did not disclose the hack and continued to solicit investments.

The agency also accused him of defrauding exchange users by misappropriating their assets.‎ Prosecutors said Montroll defrauded investors by taking WeExchange users’ bitcoins for himself, selling them for fiat and spending proceeds on personal expenses.

The Bitcoin-denominated securities site, which launched in December ‎‎2012 and held around $16 million in assets, ceased operations ‎in 2013 and transferred out leftover bitcoins to users.‎

Bitfunder was one of the most interesting parts of the cryptocurrency’s history because ‎it allowed startups to raise funding for their businesses in a manner that ‎may have been even easier than what is seen currently with the ICO ‎phenomenon.‎