A San Francisco federal jury found the founder of the cryptocurrency fund guilty of fraud
After a ten-day trial, a San Francisco federal jury convicted Japheth Dillman, 48-year-old founder of the cryptocurrency trading fund Block Bits Capital, of wire transfer fraud and conspiracy. The U.S. Department of Justice announced on Monday that prosecution evidence showed that Dillman was promoting automated trading software to investors while he knew it would not work properly.
Between June 2017 and August 2018, Dillman raised nearly $1 million from more than 20 investors. He announced to investors that Block Bits Capital would generate revenue through automated cryptocurrency trading through a proprietary tool called Autotrader, and claimed that the tool had been developed and ready for operation.

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