Crypto Payment Firm Founder Convicted of Running $6,000,000 Fraud Scheme: DOJ
The founder of a crypto payment company is convicted of defrauding investors of millions of dollars.
According to a new Department of Justice (DOJ) press release, Randall Crater, the founder of crypto payment company My Big Coin, has been found guilty of running a $6 million digital asset scheme.
The DOJ says Crater lied to clients by claiming that My Big Coin’s assets were backed by $300 million in gold, oil and other valuable assets, and that the crypto firm had a marquee partnership with global credit card giant Mastercard.
Crater then used the company’s investment funds to purchase hundreds of thousands of dollars worth of luxury items for himself.
“Craters Announced [his] misrepresentations through social media, the internet, email and text messages. In reality, coins were not backed by gold or other valuable assets, did not have a partnership with MasterCard, and were not easily transferable.
During the course of the scheme, Crater misappropriated over $6 million of investor funds for his own personal gain, including spending hundreds of thousands of dollars on antiques, artwork and jewelry.”
Crater and his company were first charged with the crimes by the Commodity Futures Trading Commission in January 2018.
According to the press release, Crater has been convicted of four counts of electronic fraud and three counts of money laundering. According to the DOJ, each count of wire fraud carries a maximum penalty of up to 20 years in prison, while each count of money laundering carries a maximum of 10 years in prison.
Cater is scheduled to be sentenced on October 27.
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Featured image: Shutterstock/rifkhas/Nikelser Kate
