Settlements and fraud claims: 16th September

Denise Jacksone

Welcome to the latest news from the crypto and forex fraud world as of 16th September 2019.

BitFunder boss reaches settlement with regulator

The former leader of a disgraced Bitcoin platform which has since been shut down is apparently close to reaching a settlement with a major US regulator.

Jon Montroll, who used to run BitFunder, was described in a Securities and Exchange Commission (SEC) statement released late on Friday of last week as being close to agreeing a settlement.

Montroll is currently in prison and is serving a sentence of 14 months.

He has already been hit by a range of fees as a result of the case, which saw a variety of charges laid at his door.

He has, for example, had to pay up around $170,000 in fines.

This came after he submitted a guilty plea to the court earlier in the year.

However, he has now also agreed with the SEC to pay an as yet undisclosed amount of cash.

It is understood, however, that this amount cannot be disclosed or publicly discussed until the criminal case against Montroll is over.

Montroll’s alleged crimes were focused on Bitcoin fraud.

His site, BitFunder, operated like a crypto stock exchange.

However, discrepancies came to light after the platform was hacked – an incident in which more than 6,000 bitcoins were taken.

It later transpired that Montroll had failed to perform basic security duties in this case, such as informing the relevant authorities – in this case the SEC.

He was also accused of using client deposits for his own purposes at another site he operated – WeExchange Australia.

Indian man held over forex fraud claims

A man from near the Indian city of Mumbai has been arrested over claims that he engaged in large-scale foreign exchange fraud.

Jayanand Nadar was taken into custody by police in the town of Versova after he apparently set up a false website with which people believed they were paying for forex assets.

The claim against Nadar, who is 40 years old, came after a local man who planned to go to Europe on holiday ended up using the site.

Once he had transferred his cash, he allegedly was unable to get in touch with Nadar over the phone.

According to police, Nadar had simply used the money to settle some debts he had of his own.

Now, Nadar has been charged with cheating under the Indian Penal Code.

According to police, evidence will be gathered from a range of technological items.

“The accused has been remanded to police custody for further probe”, said Versova’s senior police inspector.

“We have seized eight mobile phones, one laptop and two data cards from him”, added assistant inspector Sohan Kadam.

It is understood that Nadar was arrested after a trap was set up by police in the Mira Road area close to the town.

Media reports did not give any further information about the nature of this trap.

Denise Jacksone

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