The operator of a major cryptocurrency exchange ‘BitFunder’ is to face a long 20 years imprisonment admitting that he lied about the hack to the government and its customers back in year 2013.
As per the U.S. Magistrate Judge James L. Cott, the defaulter named ‘Jon Montroll’ pleased guilty for his false statements to its customers, Exchange commission ‘SEC’, U.S. Securities during the investigation of the fake Bitfunder hack of around 6,000 BTC. Montroll operated two online services — WeExchange, which served as a bitcoin depository and currency exchange service, and BitFunder, which enabled the purchase and trading of virtual shares of business entities that listed on the platform.
Montroll told in a a press release that there was a bug in the exchange’s programming code which the hackers found allowing them to hack 6,000 Bitcoins, today worth over $45 Mln. After this didn’t much was discussed regarding the clarification of the hack. Since after which the Department of Justice and SEC officially filed charges against Montroll for giving false statements in the official press releases along with unregistered securities exchange being operational.