My Big Coin Founder Allegedly Defrauds Investors of Over $6M
- The middle-aged founder of My Big Coin Pay Inc. Randall Crater, has been convicted by a federal jury of wire fraud and money laundering.
Randall Crater, the founder of digital assets firm My Big Coin, has allegedly defrauded investors of over $6 million via a cryptocurrency fraud scheme, according to an official announcement from the United States Department of Justice.
After about 3 years of marketing a fraudulent digital currency to investors, Randall Crater, 51, the founder of My Big Coin Pay Inc. has been convicted on Thursday by a federal jury of wire fraud and money laundering.
My Big Coin: A Crypto Scam Scheme
Per the announcement, documents and evidence presented at the court confirm Crater guilty of hiding under the shades of operating a crypto firm to maliciously sell fraudulent digital currencies to customers. My Big Coin, the supposed digital assets firm that offers crypto and virtual payment services is headquartered in Las Vegas, Nevada.
According to investigations from the FBI, USPIS, and CFTC, “My Big Coin” is a fraudulent cryptocurrency scheme Crater has been marketing to investors by manipulating the true nature and value of Coins. For 3 years, Crater and his associates advertised “My Big Coin” to people falsely claiming it was a fully functioning cryptocurrency backed by $300 million in gold, oil, and other valuable assets. Also, they added that the virtual currency had a partnership with MasterCard while they can also enjoy the benefits of exchanging it for government-backed paper currency or other virtual currencies.
However, it has been discovered that the coins were not backed by gold or other valuable assets, nor does it have a partnership with MasterCard nor were readily exchangeable with government-backed paper currency or other virtual currencies. Investigations revealed that the convict has allegedly secured over $6 million of investor funds for himself. He had also spent hundreds of thousands of dollars on antiques, artwork, and jewelry through the fraudulent scheme.
According to the announcement from the US Department of Justice, Crater may serve over 30 years jail term considering the statutory penalty for each offense.
Meanwhile, the statement revealed that Crater was convicted of 4 counts of wire fraud, and 3 counts of money laundering. Wire fraud has been confirmed to carry a maximum statutory penalty of up to 20 years in prison for each count, while the offense of money laundering is said to carry a maximum statutory penalty of up to 10 years in prison for each count.
However, the sentence will be determined after considering the U.S. Sentencing Guidelines and other statutory factors by a federal district court judge. Crater’s sentence has been scheduled to be held later this year on October 27.