Block Bits Capital founder convicted in nearly $1M crypto fraud

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. The U.S. Department of Justice said on Aug. 24 that the 48-year-old San Francisco resident was found guilty following a 10-day trial before U.S. District Judge Richard Seeborg in the Northern District of California. Dillman remains free on bond and is scheduled to be sentenced on Dec. 8. Court evidence showed that Dillman helped raise money for Block Bits Capital between June 2017 and August 2018 by giving investors false information about the fund’s trading technology and performance. Prosecutors said Dillman and a co-c...