The founder of the encryption fund, Block Bits, was convicted of fraud and stole nearly a million dollars from a “false-trading robot”

On 25 August, the United States Department of Justice stated that the San Francisco Federal Jury had convicted the founder of the Fund ' s Block Bits Capital, Japheth Dillman telecommunications fraud and conspiracy. The prosecution charged Dillman with collecting nearly $1 million from more than 20 investors between June 2017 and August 2018, claiming that the Fund was able to carry out and obtain proceeds from the encrypted money transactions through the self-traded software Autotrader, knowing that the software was not complete and could not function properly. Subsequently, Dillman, together with an accomplice, invested in personal expenditure and high-risk encryption projects and, after a significant loss in the investment, lied to investors that the Fund had achieved significant returns. Dillman is currently on remand and will be sentenced on 8 December to imprisonment for up to 20 years and a fine of $250,000 per charge。