Bitcoin’s bull run failed to break the resistance level of $12000; BTC fumbled for the second straight day and wiped almost $1800 off in the last two days alone – investors are now looking for the new support level. It seems more bearish comments may have a part to play in the current selloff – Bitcoin found the bottom around $6000 after shedding more than 70% of its value. Though South Korea has announced its support of cryptocurrencies, pessimistic comments from England and the arrest of BitFunder founder Jon Montroll in the United States raised traders concerns. Is this affecting bitcoin price? Bitcoin trades just over the $10,000 mark today, while Ripple and others are declining at a quick rate. U.S. regulators had announced their support of legal cryptocurrency trading when they met with the U.S. Senate banking committee early this month. However, the regulators had proclaimed that they will not let illegal activates through cryptocurrency trading. The U.S. regulators were found steadfast in their claims. The U.S. Securities and Exchange Commission (SEC) and the Federal Bureau of Investigation (FBI) arrested Jon Montroll, who is the owner of bitcoin-denominated stock exchange, BitFunder.
The US securities regulator has charged the now-shuttered BitFunder with attempting to hide information about a major hack.
Meanwhile, the US Attorney’s Office for the Southern District of New York simultaneously charged BitFunder founder, 37-year
old Jon E. Montroll of Texas who also ran digital wallet service WeExchange Australia, with two counts of perjury and
obstruction of justice. He faces decades in prison for the combined charges. Chief among the charges by the SEC is that
former bitcoin exchange BitFunder failed to disclose that hackers stole 6,000 bitcoins from customers on the BitFunder
platform, worth an estimated USD 70 million in today’s terms, that BitFunder was unable to cover. The hackers did so by
exploiting a weakness in the exchange’s code. The hack occurred in July 2013, and Montroll allegedly misled regulators by
testifying then that the exchange’s systems were successful at blocking it. He went to great lengths to conceal the breach,
even transferring some of his personal bitcoin to disguise the losses. Meanwhile, after misrepresenting the health of the
exchange’s balance sheet, he allegedly lied to regulators yet again, saying he learned of the hack only after regulators