Crypto Fund Founder Convicted of Fraud Over Fake Trading Bot
A federal jury in San Francisco convicted Japheth Dillman, founder of Block Bits Capital, of wire fraud and conspiracy for defrauding investors in a cryptocurrency trading scheme. Prosecutors said he raised nearly $1 million from more than 20 investors by claiming the fund used a proprietary “Autotrader” system for automated crypto trading, even though he knew the software did not work. Instead, he and a co-conspirator used investor money to pay themselves and speculate in other crypto ventures, while falsely telling investors the money was in safer investments and later claiming the fund had generated profits. Dillman was convicted after a 10-day trial, remains free on bond, and is scheduled for sentencing on December 8. He faces up to 20 years in prison and a $250,000 fine per count.
