My Big Coin Founder Found Guilty Of Cryptocurrency Fraud.
My Big Coin’s founder, who claimed his bogus virtual currency was backed by $300 million in gold and other assets, was found guilty of defrauding investors out of more than $6 million by marketing and selling it.
A federal jury in Boston found My Big Coin Fouder, the 51-year-old Randall Crater guilty of wire fraud and unauthorized financial transactions on Thursday. Judge Denise J. Casper of the District Court set the sentencing date for October 27. Following a lawsuit filed against him by the US Commodity Futures Trading Commission in 2018, Crater was detained and prosecuted in February 2019.
According to a news release with the US Attorney’s Office, Crater established his company in 2013. He provided payment services using a phony digital currency that he offered to investors between 2014 and 2017.
According to the announcement, Crater misrepresented itself as offering “a fully functioning cryptocurrency backed by $300 million in gold, oil, and other valuable assets.”
Additionally, he misrepresented to investors that My Big Coin and MasterCard were partners, and that the digital currency could be converted into fiat money or other cryptocurrencies. “Crater promulgated these misrepresentations through social media, the internet, email and text messages.”
Additionally, he misrepresented to investors that My Big Coin and MasterCard were partners, and that the digital currency could be converted into fiat money or other cryptocurrencies. Through social media, the internet, email, and text messages, “Crater disseminated these falsehoods.”
According to the release , he “misappropriated over $6 million in investor funds over the course of the scheme for his own personal gain and spending on goods, including hundreds of thousands of dollars in expenses on antiques, artwork, and jewelry.”
US Attorney Rachael S. Rollins said: “Crater saw the burgeoning popularity of crypto as a chance to get rich quick through an unscrupulous fraud scheme cloaked by flashy marketing tactics and outright lies.
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