US Court Convicts "My Big Coin" Founder in $6 Million Fraudulent Cryptocurrency Scheme
A federal jury has convicted the founder of “My Big Coin” in a fraudulent scheme that swindled $6 million from cryptocurrency investors. The defendant made several false claims, including that the coins were backed by gold and that the company had a partnership with Mastercard. My Big Coin’s Founder Convicted
The U.S. Department of Justice (DOJ) announced Thursday that the founder of My Big Coin Pay Inc. (aka My Big Coin), Randall Crater, has been convicted in a cryptocurrency fraud scheme. The 51-year-old from East Hampton, New York, defrauded investors of over $6 million, the DOJ alleged.
Crater has been “convicted of four counts of wire fraud, three counts of unlawful monetary transactions, and one count of operating an unlicensed money transmitting business,” the Justice Department detailed.
Eric Shen, the inspector in charge of the U.S. Postal Inspection Service’s Criminal Investigations Group who worked on the case, commented: The defendant preyed on victims with what appeared to be an unstoppable rise in cryptocurrency values, when in reality investors were only funding his lavish lifestyle.
The defendant spent the fraudulently obtained funds on “luxury items for himself, including artwork, antiques, and jewelry,” the DOJ said.
My Big Coin was marketed to crypto investors between 2014 and 2017. “Crater and his associates falsely claimed that [the] coins were a fully functioning cryptocurrency backed by $300 million in gold, oil and other valuable assets.” They further claimed that “My Big Coin has a partnership with Mastercard and that [the] coins could readily be exchanged for government-backed paper currency or other virtual currencies.” However, the Justice Department emphasized: In reality, [the] coins were not backed by gold or other valuable assets, did not have a partnership with Mastercard and were not readily transferable.
In addition, the Commodity Futures Trading Commission (CFTC) filed charges against Crater and My Big Coin in January 2018. Tags in this story CFTC, CFTC My Big Coin, my big coin, My Big Coin charged, My Big Coin crypto, My Big Coin cryptocurrency, My Big Coin founder, My Big Coin fraud
What do you think about this case? Let us know in the comments section below. Kevin Helms
A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. US Lawmaker Urges SEC to Go After Major Crypto Exchanges That Traded XRP REGULATION | 21 hours ago SEC Slaps Former Coinbase Manager With Insider Trading Charges — Identifies 9 Crypto Tokens as Securities REGULATION | 1 day ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleTraders Withdraw $3.6 Billion in Ethereum From Crypto Exchanges in 17 Days Next articleRobert Kiyosaki Warns of ‘Biggest Bond Crash Since 1788’ — Waiting to Buy Bitcoin at Lower Price Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItCentral Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year
The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.SEC Risks Violating Admin Procedure Act by Rejecting Spot Bitcoin ETFs, Says Grayscale Australia to List Bitcoin ETF After 4 Clearinghouse Participants Commit to Meet Stringent Margin Terms Fed"s Bullard Wants to Raise Bank Rate to 3.5% by Year"s End, Hints at 75 Basis Point Rate Hike Survey: Adoption in Argentina Grows, With 12 out of 100 Adults Having Invested in Crypto