2 years ago
A national assemblage has convicted the laminitis of “My Big Coin” successful a fraudulent strategy that swindled $6 cardinal from cryptocurrency investors. The suspect made respective mendacious claims, including that the coins were backed by golden and that the institution had a concern with Mastercard.
My Big Coin’s Founder Convicted
The U.S. Department of Justice (DOJ) announced Thursday that the laminitis of My Big Coin Pay Inc. (aka My Big Coin), Randall Crater, has been convicted successful a cryptocurrency fraud scheme. The 51-year-old from East Hampton, New York, defrauded investors of implicit $6 million, the DOJ alleged.
Crater has been “convicted of 4 counts of ligament fraud, 3 counts of unlawful monetary transactions, and 1 number of operating an unlicensed wealth transmitting business,” the Justice Department detailed.
Eric Shen, the inspector successful complaint of the U.S. Postal Inspection Service’s Criminal Investigations Group who worked connected the case, commented:
The suspect preyed connected victims with what appeared to beryllium an unstoppable emergence successful cryptocurrency values, erstwhile successful world investors were lone backing his lavish lifestyle.
The suspect spent the fraudulently obtained funds connected “luxury items for himself, including artwork, antiques, and jewelry,” the DOJ said.
My Big Coin was marketed to crypto investors betwixt 2014 and 2017. “Crater and his associates falsely claimed that [the] coins were a afloat functioning cryptocurrency backed by $300 cardinal successful gold, lipid and different invaluable assets.” They further claimed that “My Big Coin has a concern with Mastercard and that [the] coins could readily beryllium exchanged for government-backed insubstantial currency oregon different virtual currencies.” However, the Justice Department emphasized:
In reality, [the] coins were not backed by golden oregon different invaluable assets, did not person a concern with Mastercard and were not readily transferable.
In addition, the Commodity Futures Trading Commission (CFTC) filed charges against Crater and My Big Coin successful January 2018.
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