San Francisco Crypto Fund Founder Convicted of $1 Million Scam

A San Francisco-based founder of a cryptocurrency trading fund has been convicted of defrauding over 20 investors out of nearly $1 million. Japheth Dillman, 48, was found guilty of wire fraud and conspiracy to commit wire fraud in connection with the scheme to deceive investors about Block Bits Capital's capabilities.

The evidence presented at trial showed that Dillman and his co-conspirator raised funds from investors by making false claims about the fund's profitability using an automated algorithm called the 'Autotrader'. However, it was revealed that this tool did not exist and investor funds were being used for personal gain.

The scheme lasted from June 2017 to August 2018, during which time Dillman and his associates claimed significant profits from Block Bits' cryptocurrency trading. In reality, these investments resulted in huge losses.