Crypto Fund Founder Convicted of Defrauding Investors Over Fake Autotrader

A federal jury has convicted Japheth Dillman, founder of Block Bits Capital, of defrauding investors by claiming his cryptocurrency trading fund used a proprietary autotrader for automated crypto trading.

Dillman and his associates raised nearly $1 million from over 20 investors between June 2017 and August 2018 by promising significant profits through the use of the 'Autotrader' software tool, which they claimed was complete and working.

In reality, investor funds were used to pay Dillman and others while funding risky speculative investments in other crypto ventures that produced major losses.