FBI: Japheth Dillman allegedly scammed friends and investors in crypto fraud scheme

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Japheth Dillman has established a reputation in the gaming industry as a financial leader, as the co-founder of game accelerator YetiZen.

But lately, that reputation is in jeopardy. On April 27, the U.S. Attorney in San Francisco, the FBI, and the Internal Revenue Service said they arrested Dillman in connection with an alleged scheme to defraud victims into investing in a crypto exchange fund. -change. On top of that, Dillman was accused (Facebook link) of failing to pay a $50,000 bill from circus performers for a personal birthday party Dillman threw for a friend, according to The Dahlias, which said he hired them for a show. /p>

Authorities say the 44-year-old San Francisco resident is accused of defrauding people who invested in a fund, Block Bits Fund I, LP, which he ran with his general partner David Mata, 42, of Spokane, Washington. Dillman has not commented on the allegations related to the FBI charges, except to say he is cooperating with the ongoing investigation and has not yet pleaded guilty.

"I haven't been found guilty; there hasn't been a trial yet. I have to go to my first interview with investigators next month to review the evidence," Dillman said. haven't even interviewed me yet."

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> register here The Federal Fraud Case

Christine Lee of Dahlias carries a cake at a party hosted by Japheth Dillman.

Dillman allegedly told potential investors that Block Bits Fund was developing a new autotrader which would automatically complete cryptocurrency arbitrage trades on different exchanges. Dillman told potential investors that Block Bits Fund would profit from exploiting price differences between different cryptocurrencies sold on various exchanges.

According to Dillman, investor funds would be used to develop and operate the autotrader, which he said investors were operating and already reporting profits. The complaint further alleges that, along with Mata, Dillman raised approximately $960,000 from investors by misrepresenting the status and...