****NEWS***US Government Arrests Bitcoin Stock Exchange Founder

The long defunct exchange BitFunder is back in the news again since 2013 because of owner Jon Montroll's recent arrest Wednesday.

Jon Montroll, also known as "Ukyo" was arrested due to an investigation by the FBI and the SEC. The SEC is in the process of conducting a civil suit against the aformentioned Montroll based on claims that the exchange he founded was a unlicensed securities exchange and that he also conned investors during the life of the exchange.

While the exchange was fully functional there was a hack that withdrew 6,000 bitcoins from WeExchange (BitFunder's companion exchange). This attack caused Bitfunder to be insolvent, unable to meet debts or discharge any liabilities to coin holders.

It was alleged by prosecutors that in 2013 Jon Montroll tried to cover up the attack by depositing his own money into WeExchange when efforts to try and track down the perpetrators via IRC chat did not work. He later admitted to the introduction of his own funds though he denied knowing of the attack before the SEC presented it to him.

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For info on disgruntled investors from the BitFunder exchange back in 2013 you can read this thread: https://bitcointalk.org/index.php?topic=258612.480
Some posts of Interest...

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