San Francisco Man Convicted in Crypto Trading Fund Scam

A San Francisco man has been convicted of running a cryptocurrency fraud scheme that deceived investors out of nearly $1 million. Japheth Dillman, along with an unnamed co-conspirator, raised funds from investors in 2017 and 2018 for their trading fund Block Bits Capital.

The pair made false claims about the performance of the fund, telling investors it would use software called Autotrader to generate profits. However, during the trial, it emerged that Dillman knew the software was not functioning as promised and that the investors' expectations were unrealistic.

Dillman faces a maximum sentence of 40 years in federal prison for his convictions on two counts: wire fraud and conspiracy. Both charges carry a maximum sentence of 20 years in prison and a $250,000 fine.