Source: Bitcoin.com
“A federal jury convicted Block Bits co-founder Japheth Dillman on five fraud-related counts after prosecutors showed how nearly $1 million flowed from investors into a cryptocurrency trading operation built around an automated system that never existed. … Dillman and co-founder David Mata pulled in about $960,000 from roughly 22 retail investors between June 2017 and August 2018. The sales pitch was specific: Block Bits Fund I supposedly ran a proprietary bot trading about 100 digital assets across more than 30 exchanges and harvesting price differences between them. That machine was the heart of the pitch, and prosecutors said it simply was not there. The SEC alleged Block Bits’ actual trading amounted to Mata manually placing trades through an exchange account.” (08/24/26)