{"id":4866,"date":"2018-02-19T19:21:57","date_gmt":"2018-02-20T01:21:57","guid":{"rendered":"https:\/\/www.investorlawyers.com\/blog\/?p=4866"},"modified":"2022-03-22T15:08:03","modified_gmt":"2022-03-22T20:08:03","slug":"bitfunder-founder-face-fraud-allegations","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/bitfunder-founder-face-fraud-allegations\/","title":{"rendered":"BitFunder and Its Founder Face Fraud Allegations"},"content":{"rendered":"<p>\t\t\t\tThe SEC has filed fraud charges against BitFunder and its founder John E. Montroll. According to the regulator, both of them ran an unregistered securities exchange and committed fraud against those who used the exchange by misappropriating bitcoins and not disclosing a cyberattack in which more than $6,000 bitcoins, worth about $775K, was stolen.<\/p>\n<p>Montroll is accused of selling purported investments that were actually <a href=\"https:\/\/www.stockbroker-fraud.com\">unregistered securities<\/a> and then misappropriating money from the investments. The offerings were \u201cshares\u201d of \u201cUkyo.Loan,\u201d also known as \u201cUkyo Notes.\u201d Buyers were told that money from the sales would go toward private investments and he promised them a .05% daily interest rate.<\/p>\n<p>Instead, Montroll allegedly used some of the proceeds to cover his business and personal expenses and to \u201creplenish\u201d the bitcoins he is accused of misappropriating from an earlier offering. Also, after the cyberattack, Montroll allegedly made it appear as if BitFunder was profitable even though it had a bitcoin deficit.<\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/bitfunder-founder-face-fraud-allegations\/#more-4866\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The SEC has filed fraud charges against BitFunder and its founder John E. Montroll. According to the regulator, both of them ran an unregistered securities exchange and committed fraud against those who used the exchange by misappropriating bitcoins and not disclosing a cyberattack in which more than $6,000 bitcoins, worth about $775K, was stolen. Montroll [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[4081,3738,3760,3741],"tags":[2943,2971,2972],"class_list":["post-4866","post","type-post","status-publish","format-standard","hentry","category-bitfunder","category-investor-fraud","category-sec-enforcement","category-securities-fraud","tag-bitcoin","tag-bitfunder","tag-fraud-allegations"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>BitFunder and Its Founder Face Fraud Allegations | SSEK Law Firm Blog<\/title>\n<meta name=\"description\" content=\"The SEC has filed fraud charges against BitFunder and its founder John E. Montroll. According to the regulator, both of them ran an unregistered &#8212; February 19, 2018\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/bitfunder-founder-face-fraud-allegations\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"BitFunder and Its Founder Face Fraud Allegations | SSEK Law Firm Blog\" \/>\n<meta name=\"twitter:description\" content=\"The SEC has filed fraud charges against BitFunder and its founder John E. Montroll. According to the regulator, both of them ran an unregistered &#8212; February 19, 2018\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"BitFunder and Its Founder Face Fraud Allegations | SSEK Law Firm Blog","description":"The SEC has filed fraud charges against BitFunder and its founder John E. Montroll. 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According to the regulator, both of them ran an unregistered &#8212; February 19, 2018","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/bitfunder-founder-face-fraud-allegations\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/bitfunder-founder-face-fraud-allegations\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"BitFunder and Its Founder Face Fraud Allegations","datePublished":"2018-02-20T01:21:57+00:00","dateModified":"2022-03-22T20:08:03+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/bitfunder-founder-face-fraud-allegations\/"},"wordCount":493,"keywords":["Bitcoin","BitFunder","Fraud Allegations"],"articleSection":["BitFunder","Investor Fraud","SEC Enforcement","Securities Fraud"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/bitfunder-founder-face-fraud-allegations\/","url":"https:\/\/www.investorlawyers.com\/blog\/bitfunder-founder-face-fraud-allegations\/","name":"BitFunder and Its Founder Face Fraud Allegations | SSEK Law Firm Blog","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"datePublished":"2018-02-20T01:21:57+00:00","dateModified":"2022-03-22T20:08:03+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"The SEC has filed fraud charges against BitFunder and its founder John E. 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