Crypto fund founder Japheth Dillman convicted of fraud for misrepresenting a fake trading bot to investors and raising nearly $1M.
Regulation & Gov ·
A federal jury in San Francisco convicted Japheth Dillman of wire fraud and conspiracy after he raised close to $1 million from over 20 investors in Block Bits Capital by claiming its Autotrader software was operational when he knew it was not. Dillman and a co-conspirator used investor funds for personal payments and losing speculative bets in other crypto ventures while falsely reporting profits to backers between June 2017 and August 2018. He faces sentencing in December with potential penalties of up to 20 years in prison and a $250,000 fine on each count.