Topic: The 94% Con by Jon Montroll (Read 84938 times)

JON MONTROLL
Register Number: 56837-177
Age:    39
Race:    White
Sex:    Male
Located at: Beaumont Low FCI
Release Date: 06/26/2020

https://bitcointalksearch.org/topic/m.50434179

Good luck.

Good morning all,

I just come across this thread after reading that Jon Montroll has been sentenced. I had BTC located on Bitfunder.com and I've noticed some people have received letters in the mail regarding victims of crime, yet I have not. I'm from Australia and never been an American citizen and I would like to know if there is an agency in which I can follow this up with?

I realise this is a bit of a long shot but thought I would give it a shot anyway. Any help would be appreciated

Regards

Did Jon pay that amount back to Ukyo-Loan Creditors? It's not the amount that he gave back through the claim portal? Because weexchange users could withdraw there too.

Following a meet and confer process, the Government has revised its proposed restitution figure to $183,530.04 compared to $212,629.32 initially sought. The defendant, however, disagrees.

In a Letter filed earlier today with the Court, the defense argues the Court should enter an order of restitution in the amount of $167,438 and should credit Jon Montroll with having already paid $137,367.55 towards that amount, leaving $30,070.45 in unpaid restitution.

Based on the restitution information provided to date, the Court should credit Jon Montroll with restitution payments of:

a $20,000 payment to the Registry of the Court;
a $25,000 payment to the victims of misappropriation;
$76,495.49 in payments to the post-hack purchasers of Ukyo Loans; and
$15,872.06 in other payments to the post-hack purchasers of Ukyo Loans,
towards his agreed-upon restitution of $167,438, leaving total unpaid restitution of $30,070.45.

The case continues at the New York Southern District Court.]https://financefeeds.com/us-govt-bitfunder-operator-jon-montroll-clash-over-restitution-amount/[/url]

As the sentencing of Jon Montroll, the operator of Bitcoin-related services WeExchange and Bitfunder.com, approaches, the arguments between the US Government and the defendant regarding what the appropriate penalty has to be are becoming more intense.

It has already become apparent that the parties in the criminal case disagree on whether the defendant should get a probationary sentence or a prison term. The latest filings with the New York Southern District Court reveal that the disagreement spreads to the amount of restitution sought.

The Government requests that the Court order the defendant Jon Montroll to pay restitution to the victims of his scheme to defraud them in connection with the purchase and sale of Ukyo.Loan securities.

Montroll deceived investors and potential investors in a security he devised, Ukyo.Loan. Montroll launched this product on or about July 18, 2013. Montroll held Ukyo.Loan customer funds in the same commingled account as users of his Bitfunder and WeExchange services.

Beginning on July 28, 2013, Montroll’s systems were exploited by malicious users to access bitcoins held in the commingled account. Over the course of four weeks, those malicious users wrongfully extracted thousands of bitcoins that belonged to Montroll’s customers and investors. Importantly, the Exploit occurred in stages over a period of weeks.

Instead of immediately disclosing the Exploit to his users and investors on July 28, 2013, such that existing investors could redeem their shares for face value as promised, and thus reclaim their funds, before the Exploit reached its conclusion, Montroll concealed the existence of the Exploit, the Government notes. Further, on at least one occasion, Montrol falsely represented to customers that BitFunder was commercially successful.

Following the start of the Exploit, Montroll raised approximately 973 bitcoins through continued marketing of the Ukyo.Loan securities.

By the end of the Exploit, more than 200 Ukyo.Loan customers suffered losses, including those that invested before the Exploit began (and were deprived of their opportunity to withdraw before hackers took their funds) and those who invested after the Exploit began (who were deceived into believing they were buying a security related to a profitable business).

Following a meet and confer process, the Government has revised its proposed restitution figure to $183,530.04 compared to $212,629.32 initially sought. The defendant, however, disagrees.

In a Letter filed earlier today with the Court, the defense argues the Court should enter an order of restitution in the amount of $167,438 and should credit Jon Montroll with having already paid $137,367.55 towards that amount, leaving $30,070.45 in unpaid restitution.

The heart of the defense’s argument is that the reason why purchasers of Ukyo Loans were not able to redeem their Ukyo Loans is emphatically not because Montroll failed to disclose the hack. It is because, within the first 28 hours of the hack, more than 77% of the Bitcoins held in the WeExchange system had been stolen and, only 14 hours later, more than 99% of the Bitcoins previously held in the WeExchange wallet had been stolen. According to the defense, even if Jon Montroll had disclosed the hack after the first 28 hours of the hack, it would have been impossible for anyone with a claim to Bitcoins held in the WeExchange wallet to get more than a miniscule portion of their Bitcoins back.

Based on the restitution information provided to date, the Court should credit Jon Montroll with restitution payments of:

a $20,000 payment to the Registry of the Court;
a $25,000 payment to the victims of misappropriation;
$76,495.49 in payments to the post-hack purchasers of Ukyo Loans; and
$15,872.06 in other payments to the post-hack purchasers of Ukyo Loans,
towards his agreed-upon restitution of $167,438, leaving total unpaid restitution of $30,070.45.

The case continues at the New York Southern District Court.

Summarizing the quote from your article. 'Montroll lied, defrauded, and stole.'

Not sure what you mean. That's what the news said. If the judge agrees then there probably is something Jon should do before going to jail. Please check:

https://financefeeds.com/ny-court-cancels-planned-sentencing-of-bitfunder-operator/
and
https://financefeeds.com/bitfunder-operator-jon-montroll-sentencing-adjourned/

Montroll did not disclose what happened to users of BitFunder and WeExchange, or investors in Ukyo.Loan. Instead, he continued to promote and sell Ukyo.Loan to customers and, on at least one occasion, falsely represented to customers that BitFunder was commercially successful. As a result of his omissions and misrepresentations, the defendant raised approximately 978 bitcoins through Ukyo.Loan after his discovery of the Hackers’ actions.

It is _so_ cute how you still cling to the fantasy that Montroll gives a shit about trying to pay back those whom he has defrauded.

... the news wrote about Jon trying to pay his creditors and needs more time to do so, which is why he should not go to jail instantly or so.

hi guys, i am a non-US citizen living outside USA.  today, i received a mail from US dept of justice southern district of new york, which is regarding united states v jon montroll.  the mail stated that i was identified by law enforcement as a victim or potential victim during the investigation of the criminal case.

what should i do next after receiving this mail?

i recalled i had funds on bitfunder and weexchange, as well as ukyo.loan shares.  but i can't provide proofs to the amount of bitcoins there.  does the gov't have a copy on who owns how many bitcoins in bitfunder/weexchange/ukyo.loan?

now, i am interested to know if our funds will be returned to us, and are we going to get the same amount of bitcoin, or will they be paid by using the rate of 94 usd/btc?

You should contact the resources listed here:

( there is also an Ombudsman whom you can contact if you feel your victim statement or filing has been overlooked or ignored )

https://www.justice.gov/usao-sdny/programs/victim-witness-services

I have not. I have just sent the FBI agent referred to above an inquiry as to whether or not the government considers me a victim. According to the source, I should have been contacted regarding sentencing. From an article linked within the quoted article:

Victim & Witness Services

The Office’s Victim and Witness Coordinator provides important services to victims and witnesses of federal crimes, including providing information about compensation for expenses and court-ordered restitution.

SDNY Victim and Witness Coordinator
United States Attorney's Office
One St. Andrew's Plaza
New York, New York 10007
1-866-874-8900

Victim Services
The Office is committed to protecting the rights of crime victims.  If you are a victim of a crime being prosecuted by our Office, our Victim and Witness Unit can make sure that you are notified of important stages of the case and can help refer you to other agencies that provide important services, including compensation and counseling. Learn about your rights as a victim

Case Updates
In general, the Government attempts to identify each victim in a given case, and to provide those victims with the information relevant to the case through the Department of Justice’s Victim Notification System. In cases where, due to the number of victims involved, or for other reasons, such notification is impracticable, the Government may use other methods to communicate with victims, including posting relevant information online.  Click on the links below for more detailed information about specific cases:

• United States v. William Tierney
• United States v. JP Morgan Chase NA
• United States v. St. Lawrence, et al., 16 Cr. 259 (CS)
• United States v. Michael Mendlowitz & Richard D. Hart, 17 Cr. 248 (VSB)
• U.S. v. Pokerstars et al., 11 Civ. 2564 (LBS) (including Full Tilt Poker and Absolute Poker)
• Operation Ghost Click
• United States v. Richard Moseley, 16 Cr. 079 (ER)
• United States v. Travell Thomas, et al., S4 15 Cr. 667 (KPF)
• United States v. General Motors Company (“GM”)
• United States v. Alex Yücel, S1 13 Cr. 834
• U.S. v. Toyota Corporation
• U.S. v. Bernard L. Madoff and related cases
• U.S. v. Chan Ming Fon
• U.S. v. Tsastsin et al., S2 11 Cr. 878 (LAK)
• U.S. v. Anuradha Saad & Richard Adelson (Impath, Inc.)
• U.S. v. Myron Olesnyckyi (Monster) (PDF)
• U.S. v. Ian Stuart
• U.S. v. Mario S. Levis
• U.S. v. Joseph P. Collins
• U.S. v. Avi Ayache et al.
• U.S. v. All Right, Title and Interest of Assa Corp.
• U.S. v. James Nicholson
• Mount Vernon Money Center (MVMC)
• Specialist Cases
• U.S. v. Scott Tucker

Additional Resources

• New York State Crime Victims Board
• U.S. DOJ Office for Victims of Crime
• Safe Horizon

Witness Services
If you have been notified that you are required to appear as a witness for the Government in a case or other legal proceeding being handled by this Office, the Victim/Witness Unit will make arrangements for your travel and lodging, which we will prepay. If you are coming from outside the local court area, you should not make travel arrangements yourself.

• Instructions for Witnesses Appearing on Behalf of the United States Government (PDF)
• Victim/Witness Brochure (PDF).

Complaints
If you believe a Department of Justice employee failed to provide crime victim rights, you may submit a complaint form.

• Complaint Form (English)
• Complaint Form (Español)

If after submitting a Complaint Form you continue to believe an employee of the Department of Justice has failed to provide the rights established under the Crime Victims Rights Act of 2004, 18 U.S.C. § 3771, you may file a complaint with the Office of the Victims’ Rights Ombudsman of the Department of Justice:

Marie A. O'Rourke    Marie.O’[email protected]
Victims’ Rights Ombudsman
Executive Office for United States Attorneys
Department of Justice
RFK Main Justice Building
950 Pennsylvania Ave., N.W.
Room 2261

Has been anyone here contacted?

For those identified victims residing in the United States, the Government has sent written notice informing them of the April 2, 2019 sentencing proceeding and of their right to be heard in connection with sentencing. For those victims residing abroad, the Government has contacted the relevant foreign Government or provided notice to the identified victims directly. As of the date of the letter (March 26, 2019), the Government has not received any victim impact statements.