Block Bits Founder Japheth Dillman Convicted of Telecom Fraud

On August 25, the U.S. Department of Justice announced that a federal jury in San Francisco found Japheth Dillman, the founder of the cryptocurrency fund Block Bits Capital, guilty of telecom fraud and conspiracy. Prosecutors alleged that between June 2017 and August 2018, Dillman raised nearly $1 million from over 20 investors, claiming that the fund was generating profits through a proprietary trading software called "Autotrader" for cryptocurrency trading, while he knew that the software was incomplete and non-functional. Dillman and an accomplice used the investment funds for personal expenses and high-risk cryptocurrency project investments, and after significant losses in related investments, continued to falsely inform investors that the fund had achieved substantial profits. Dillman is currently out on bail and is scheduled to be sentenced on December 8, facing a maximum of 20 years in prison and a $250,000 fine for each count.

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