WeExchange
| Industry | Bitcoin exchange / custody wallet (historical) |
| Founded | Limited operations before public launch 8 December 2012 |
| Headquarters | Australia (WeExchange Australia Pty Ltd per SEC complaint); U.S. entity also described historically |
WeExchange was a bitcoin deposit and exchange service operated by Jon E. Montroll. It held user bitcoin used with the related BitFunder platform. fiat rails including Mt. Gox redeemable codes (USD), Interac e-Transfer (CAD), Australian bank wire (AUD), and free bitcoin deposits credited after six confirmations, with multi-factor login protection. The exchange emerged from invite-only operations on 8 December 2012.[1]
BitFunder
An SEC complaint filed 21 February 2018 in the U.S. District Court for the Southern District of New York alleges that from December 2012 through November 2013 Montroll operated BitFunder as an unregistered online securities exchange and that users deposited bitcoins into a virtual currency wallet maintained by WeExchange (WeExchange Australia Pty Ltd), with user bitcoins commingled in that wallet under Montroll's control. The complaint alleges misappropriation from the WeExchange wallet and failure to disclose a cyberattack on BitFunder beginning 28 July 2013 through 27 August 2013 that resulted in the theft of more than 6,000 bitcoins (the complaint also cites approximately 6,062 BTC). The complaint states Montroll shut down BitFunder on 14 November 2013. Those theft figures, misappropriation claims, and related narrative are allegations in the complaint.[2][3]
Sentencing
CoinDesk reported on 12 July 2019 that Montroll was sentenced to 14 months in prison after a guilty plea to securities fraud and obstruction of justice, quoting U.S. Attorney Geoffrey S. Berman of the Southern District of New York. The report describes Montroll as operator of BitFunder and the WeExchange deposit service and notes related findings described by prosecutors; it does not supply a full restitution schedule for WeExchange balances suitable to invent here.[4]