Block Bits Founder Convicted After Investors Lose $960K in Fake Crypto Bot Scheme
TL;DR:
- A federal jury in San Francisco convicted Japheth Dillman on four counts of wire fraud and one count of conspiracy.
- The firm raised approximately $960,000 from 22 investors between June 2017 and August 2018 under the promise of a non-existent automated bot.
- Direct investor losses amount to roughly $508,000, according to criminal complaint filings and SEC records.
This Monday, a federal jury in the U.S. District Court for the Northern District of California found Block Bits founder Japheth Dillman guilty, following confirmation of a fraudulent scheme involving approximately $960,000 from retail investors.
Japheth Dillman, founder of Block Bits (the crypto “autotrader” fund charged in 2022 that raised nearly $1M), has been found GUILTY on every single count.
Conspiracy + four counts of wire fraud.
Unanimous. Dated today. https://t.co/IZqYux9orw pic.twitter.com/dpJ5nQSq4w
- Ariel Givner (@GivnerAriel) August 24, 2026
Law360 reported from the San Francisco courthouse that deliberations by the 12-member jury took around six hours across two court days. Federal prosecutors proved that funds raised between June 2017 and August 2018 were directed into a non-existent arbitrage system.
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