A former cryptocurrency platform operator was charged by the Justice Department and the U.S. Securities and Exchange Commission Wednesday with fraud and making false statements after lying to regulators about a 2013 hack of his system that saw thieves abscond with bitcoins valued currently at over $60 million.

BitFunder founder Jon Montroll of Texas was charged by the SEC in the U.S. District Court for the Southern District of New York with operating an unregistered securities exchange that defrauded users by allegedly misappropriating bitcoins and failing to disclose the cyberattack that resulted in the theft of thousands of bitcoins in late summer 2013.

According to regulators, Montroll was using his Australia-based cryptocurrency investment platform, WeExchange. Users deposited bitcoins into the exchange, which allowed investors to deal in virtual shares of cryptocurrency-related enterprises. At all times, Montroll controlled access to the digital “wallet.”

Even ahead of the cyberattack, investigators allege Montroll offered an unregistered security  that Montroll said would be used for private investment purpose. Investigators allege he misappropriated funds from the digital sale of this security to pay personnel and business expenses, and to replenish bitcoins he'd already misappropriated form BitFunder prior to the offering.

Then the cyberattack occurred. Over the course of a month from late July to late August, a group of BitFunder users attacked the platform, stealing more than 6,000 bitcoins. Yet Montroll never reported the attack to anyone, including investors in the security he'd offered, which was supposed to generate a return of 0.05 percent a day. He continued to accept deposits and solicit investments, using new bitcoin deposits to fund withdrawal requests after the cyberattack, according to regulators.

By November 2013, users were beginning to experience problems attempting to withdraw bitcoins from WeExchange. At first, Montroll claimed technical problems. But by Nov. 14, he shut BitFunder down.

Federal prosecutors said Montroll provided sworn testimony that same month to SEC officials as part of its investigation into the hack and BitFunder's business practices. Montroll denied he'd been hacked, claiming the system prevented any theft. He went so far, they allege, as to produce a screenshot showing a balance as of Oct. 13, 2013, of nearly 6,680 bitcoins in the WeExchange account.

Prosecutors allege that was a fabrication. In reality, the balance represented the infusion of bitcoins from his own account in an attempt to cover up the theft. Later, prosecutors said Montroll continued to lie, even when presented with evidence he had manually changed the balance in the WeExchange account. He told SEC investigators he only found out about the hack after the SEC had approached him, despite investigators having found out he was chatting with people online about how to track down stolen bitcoins during the month the hacking occurred.

“SEC investigations rely on learning the full and accurate facts concerning financial markets and products. As alleged, the defendant repeatedly lied during sworn testimony and misled SEC staff to avoid taking personal responsibility for the loss of thousands of his customers' bitcoins,” U.S. Attorney Geoffrey Berman for the Southern District of New York said in a statement. “These charges signify that we will use the full force of the federal criminal law to protect the integrity of the SEC's investigative process.”

Jay Dewald, a partner with the Texas law firm Jackson Walker, is representing Montroll, according to the US Attorney's Office. He did not return a request for comment.