Operator of Bitcoin Exchange Pleads Guilty to Defrauding Investors

The operator of a shuttered bitcoin-denominated exchange pleaded guilty to federal charges that he defrauded investors and lied to U.S. securities regulators investigating the theft by hackers of virtual currency now worth about $46 million. Jon Montroll, 37, pleaded guilty to securities fraud and obstruction of justice before U.S. Magistrate Judge James Cott in Manhattan, federal prosecutors said in a statement.