Block Bits Capital Founder Convicted in Crypto Fraud Scheme

A federal jury in San Francisco has convicted Japheth Dillman, the 48-year-old co-founder of the cryptocurrency trading fund Block Bits Capital, of wire fraud and conspiracy to commit wire fraud. The verdict, announced by the U.S. Department of Justice on August 24, 2026, follows a 10-day trial and centers on a scheme that defrauded more than 20 investors of nearly $1 million. Prosecutors presented evidence that between June 2017 and August 2018, Dillman and a co-conspirator, David Mata, raised approximately $960,000 by promoting Block Bits Fund I, LP.