The creator of a now-defunct cryptocurrency company was given a sentence of more than eight years in jail on Tuesday for scamming consumers and investors out of millions of dollars by falsely advertising a virtual currency called My Big Coin.
Randall Crater was sentenced to 100 months in prison, followed by three years of supervised release, and compelled to repay the millions—roughly $7.6 million—that victim of his fraudulent crypto operation lost. It will also include restitution in an amount that will be decided at a later date.
Founded in 2013, My Big Coin allegedly claimed to provide virtual money transfers through a deceptive digital currency, which the founder marketed to investors between 2014 and 2017 using false statements.
However, the founders asserted that My Big Coin had a connection with MasterCard and that the coins were a fully operational cryptocurrency backed by gold.
Unfortunately, the coins had no cooperation with MasterCard and were not backed by gold or other valuable assets. Crater used the cash he received from clients and investors over the course of the scam to purchase a home, automobiles, and more than $1 million worth of jewelry, art, and antiques.
Victims lost over $7.5 million to “My Big Coin”
In a prosecution that sprang out of a precedent-setting case by the U.S. Commodity Futures Trading Commission, a jury found Crater guilty of engaging in wire fraud and carrying out illegal financial transactions.
According to United States Attorney Rachael S. Rollins, Mr. Crater engaged in a “brazen fraud scheme” for almost four years that preyed on investors and clients who trusted him and his fictitious company, causing victims to lose more than $7.5 million as a consequence.
“He [Randall Crater] saw the growing crypto marketplace as an opportunity to create the illusion of My Big Coin as a legitimate service from which investors would yield a profit.”
Mr. Crater’s falsehoods and dishonesty allegedly let about 55 victims and their families suffer actual grief, sorrow, and hardship. He then used their money to fund his luxurious lifestyle by funneling it into accounts under his control.
Crater, on the other hand, maintained his innocence even after being found guilty, asserting in a YouTube video three months ago that there was a “My Big Coin” credit card and that an investor had admitted under oath to using the card several times.