San Francisco Crypto Fund Co-Founder Japheth Dillman Convicted of Wire Fraud

A federal jury in San Francisco has convicted Japheth Dillman, co-founder of cryptocurrency trading fund Block Bits Capital, of wire fraud and conspiracy to commit wire fraud. Dillman, 48, was found guilty of defrauding over 20 investors out of nearly $1 million from June 2017 to August 2018.

Evidence presented at the trial showed that Dillman and his co-conspirator misled investors about the capabilities and profitability of Block Bits Capital. They claimed the fund would profit from automated cryptocurrency trading using a software tool called Autotrader, but Dillman knew it did not work as promised.

The funds raised from investors were used to pay themselves and make risky investments in other cryptocurrency ventures, resulting in significant losses. Dillman falsely told investors that Block Bits had led to substantial profits.