A federal jury in California has found a co-founder of Block Bits Fund guilty of wire fraud, according to Techub News, citing Crypto Briefing. Prosecutors said the fund raised roughly $960,000 from more than 20 investors between 2017 and 2018 by claiming it had an automated arbitrage trading bot that, in fact, never operated. The fund itself was active during that same period. Authorities said Dillman and his co-founder diverted investor money into the AML Bitcoin ICO, a move that left investors with about $508,000 in losses. The wire fraud conviction carries a maximum sentence of 20 years in prison. In the same case, co-defendant David Mata pleaded guilty in June 2022 and later testified. He has since been barred from working in the financial industry. The case centers on misrepresentations tied to crypto investment operations and the handling of investor funds.
A federal jury in California has convicted a co-founder of Block Bits Fund on wire fraud charges, Techub News reported, citing Crypto Briefing.
According to the case details, Block Bits Fund operated from 2017 to 2018 and told investors it had an automated arbitrage trading bot. Prosecutors said that bot never ran. Using that claim, the defendants obtained about $960,000 from more than 20 investors during that period. The wire fraud charge carries a maximum sentence of 20 years in prison.
Authorities said Dillman and his co-founder diverted investor funds into the AML Bitcoin ICO, causing about $508,000 in investor losses.
In the same case, co-defendant David Mata pleaded guilty in June 2022 and testified. He has since been barred from the financial industry.
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