San Francisco Crypto Fund Co-Founder Convicted of Defrauding Over 20 Investors

A San Francisco-based cryptocurrency trading fund co-founder has been convicted of defrauding over 20 investors out of nearly $1 million.

Japheth Dillman, 48, was found guilty on one count each of wire fraud and conspiracy to commit wire fraud after a 10-day trial.

Evidence presented at the trial showed that Dillman and his co-conspirator raised funds from investors by misleading them about the capabilities and profitability of Block Bits Capital.

The duo claimed the fund would profit from automated cryptocurrency trading using a software tool called the 'Autotrader,' but in reality, the tool did not work, and investor funds were used to pay themselves and make risky investments in other cryptocurrency ventures.