ByBay City News Service

Aug 25, 2026

A federal jury on Monday convicted a San Francisco man of wire fraud and conspiracy after federal prosecutors said he helped deceive more than 20 investors out of nearly $1 million through a cryptocurrency trading fund.

Japheth Dillman, 48, was convicted following a 10-day trial, according to the U.S. Attorney's Office for the Northern District of California.

Based on trial documents, Dillman and a co-conspirator raised money from investors between June 2017 and August 2018 by making false claims about Block Bits Capital, a cryptocurrency trading fund they helped start.

Investors were told the fund would use an automated trading program called "Autotrader" to generate profits. But evidence at trial showed Dillman knew the software was not working and that investor money could not be used as promised.

Dillman and his co-conspirator also used investor money to pay themselves and make risky investments in other cryptocurrency ventures, according to federal prosecutors. Those investments suffered significant losses, while investors were falsely told that Block Bits' cryptocurrency trading had generated large profits.

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Dillman remains free on bond. He is scheduled to be sentenced Dec. 8. He faces for each of his two convictions a maximum sentence of 20 years in federal prison and a $250,000 fine, prosecutors said.