Joe E. Montroll of Saginaw Texas, a crypto trader, faces 20 years prison for crypto fraud. There was a theft of cryptocurrency deposited on his platform, to which he showcased to the public and investigators that no theft occurred. Even though he had denied any knowledge of the theft, he has pleaded guilty to his knowledge of the theft of the digital currency from his platform.
Joe E. Montroll Faces 20 years in prison for Crypto Fraud
He operated a bitcoin exchange business before he was arrested, we-exchange and Bitfunder. Bitfunder was a platform that helps clients to buy and sell tokenized shares that are listed on the platform, and the we-exchange platform enables Bitcoin deposition and its trading.
The theft on the Bitfunder and the we-exchange platforms is similar to the theft on Mt. Gox – esque, a hack in 2013. The hackers took advantage of the security of the platform to steal more than 6,000 BTC; this put the platform in a massive backlog of cash that could not be covered up again.
Montroll refused to come out clean to his customers and portrayed the platform not having experienced any form of hack. He went further to promote Bitfunder and was able to amass 978 BTC from the promotion. The platform was already in jeopardy from the massive theft, but he did not declare the situation to his users. When the investigators were investigating, he was accused of showing the investigators fake screen of the financial details of the platform.
For the act of deceiving the investigators and having earlier denied the allegations which he later pleaded guilty, he placed himself at the risk of blocking charges leveled against him. It was on Monday, before the U.S. Magistrate Judge James L. Cott, that Montroll finally pleaded guilty to the charges of securities fraud and obstruction of justice, which places him to face 20 years imprisonment.
Cases of cryptocurrency fraud and hacking have continued to trail the crypto world of recent. The issues that trail cryptocurrency fraud and hacking is one of the major reasons some countries are cautious in legalizing it, and some other countries have banned it. However, the fraud and the hack are issues that could be dealt with to reap the eternal benefits that lie in cryptocurrency. Because crime is always a feature of every society, putting it to the nearest minimum makes the society safe. What do you think?