Published: 30.04.2022
Article reading time:
1 min.
The US Justice Department filed formal charges against 44-year-old Japhet Dillman. The founder of Block Bits is accused of defrauding investors in the amount of $960,000.
Block Bits Fund was founded in 2017 during the ICO boom. The founders of the “fund” attracted investors with promises of big profits through “arbitrage trading in the cryptocurrency market” and investments in tokens. However, according to US law enforcement, the reports on the company’s website were forged in order to lure more people.
Separately, the prosecutors’ statement highlights that Japheth Dillman lied to investors in June 2017 about the Block Bits automated trading system already working and making a profit. In fact, trading robots were not launched. Then there were claims that investors’ funds were placed in cold wallets. It was also a lie and as a result the investors lost their investment.
If the court finds Dillman and his partner David Mata guilty, they face up to 20 years in prison and a $250,000 fine.
Recently, the US Department of Justice indicted two Europeans that, together with former Ethereum developer Virgil Griffith, they helped the North Korean authorities to circumvent US sanctions using blockchain and cryptocurrencies.
Source: Bits
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