Block Bits Capital Co-Founder Japheth Dillman Convicted of $1 Million Crypto Fraud

Japheth Dillman, co-founder of Block Bits Capital, has been convicted of wire fraud and conspiracy in connection with a $1 million cryptocurrency trading fund. The scheme involved investors who were promised significant profits through an automated trading program called the 'Autotrader', but instead their money was diverted to personal payments and speculative investments that resulted in substantial losses.

Evidence presented during the 10-day trial showed Dillman knew the algorithm did not work as represented, so investor funds could not be deployed through the advertised strategy. The scheme occurred between June 2017 and August 2018.

Dillman faces a maximum of 20 years in prison and a fine of up to $250,000 for each count of conviction under the wire fraud and conspiracy statutes. He is scheduled to be sentenced on December 8th.