A federal jury has convicted Block Bits Capital co-founder Japheth Dillman of wire fraud and conspiracy after prosecutors said more than 20 investors lost nearly $1 million in a fraudulent cryptocurrency trading fund.
Summary
- Japheth Dillman was convicted of defrauding more than 20 Block Bits Capital investors of nearly $1 million.
- Investors were told the fund used an automated crypto trading tool even though Dillman knew the algorithm did not work.
- Investor funds were used for personal payments and risky crypto investments that resulted in significant losses.
- Dillman faces up to 20 years in prison and a $250,000 fine for each count, with sentencing set for Dec. 8.