The United States Securities and Exchange Commission (SEC) is getting close to resolving a case against former bitcoin-denominated platform and its operator. Earlier today, the regulator submitted a Motion at the New York Southern District Court, asking that the Court approves a settlement in the case targeting BitFunder and its operator Jon E. Montroll.

According to the SEC, the proposed consent Judgment is fair and reasonable and in the public interest. Among other things, the Judgment:

1. enjoins Montroll from violating Sections 5 and 10(b) of the Securities Exchange Act of 1934 [15 U.S.C. §§ 78e &78j(b)] and Rule 10b-5 [17 C.F.R. § 240.10b-5], promulgated thereunder; and Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 [15 U.S.C. §§ 77e(a), e(c) & 77q(a)]; and

2. orders that Montroll is liable for disgorgement in the amount of $155,572.53.

The Commission also requests that the Court dismiss its claims against BitFunder under Federal Rule of Civil Procedure 41(a)(2). The entity is now defunct, has no assets, and therefore is unlikely to be used by Montroll to engage in future violations, the SEC explains.

Let’s recall that, on February 21, 2018, the SEC charged BitFunder and Montroll with operating an unregistered securities exchange and defrauding users of that exchange. The SEC also charged the operator with making false and misleading statements in connection with an unregistered offering of securities.

The SEC alleges that BitFunder and its founder, Jon E. Montroll, operated BitFunder as an unregistered online securities exchange and defrauded exchange users by misappropriating their bitcoins and failing to disclose a cyberattack on BitFunder’s system that resulted in the theft of more than 6,000 bitcoins. The SEC also alleges that Montroll sold unregistered securities that purported to be investments in the exchange and misappropriated funds from that investment as well.