Jon E. Montroll, Securities Fraud and Obstruction of Justice, New York 2023
Grimy Times has learned that a notorious bitcoin scammer has been sentenced to 14 months in prison for securities fraud and obstruction of justice in New York.
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that Jon E. Montroll, a/k/a “Ukyo,” was sentenced yesterday by U.S. District Judge Richard M. Berman to 14 months in prison.
Manhattan U.S. Attorney Geoffrey S. Berman said, “Jon Montroll lied to his investors and, after his lies caught the attention of the SEC, lied to them, too. The sentence he received serves as a reminder that this Office will not overlook those who violate their obligation to be honest with investors and the regulators working to protect them.”
According to the Information, the allegations in the Complaint, and statements made during the proceedings in Manhattan federal court, Jon E. Montroll operated two online bitcoin services: WeExchange Australia, Pty. Ltd. (“WeExchange”) and BitFunder.com (“BitFunder”). WeExchange functioned as a bitcoin depository and currency exchange service. BitFunder facilitated the purchase and trading of virtual shares of business entities that listed their virtual shares on the BitFunder platform.
Between the launch of Bitfunder, in or about December 2012, and at least in or about July 2013, Montroll converted a portion of WeExchange users’ bitcoins to his personal use without the users’ knowledge or consent. For example, Montroll exchanged numerous bitcoins taken from WeExchange into United States dollars, then spent those funds on personal expenses, such as travel and groceries.
In addition to a prison sentence, Judge Berman ordered Montroll, 38, of Saginaw, Texas, to serve three years of supervised release and to pay forfeiture in the amount of $167,480.
Mr. Berman praised the outstanding work of the Federal Bureau of Investigation. He also thanked the Securities and Exchange Commission, whose New York Regional Office began an investigation into BitFunder and the Exploit in the aftermath of the scandal.
The exact criminal charges against Montroll are securities fraud and obstruction of justice. The crime was committed in New York. The sentence was handed down on an unknown date, but the sentencing hearing was held yesterday in Manhattan federal court. Montroll is currently serving a 14-month prison sentence, followed by three years of supervised release. He is also required to pay a fine of $167,480.
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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