The founder of a multi-million dollar fraud scheme will spend 100 months in prison.
United States District Court Judge Denise Casper sentenced defunct cryptocurrency business “My Big Coin” founder Randall Crater to more than eight years in federal prison.
According to the announcement issued by the US Attorney's Office on January 31st, the man was sentenced for “marketing and selling fraudulent virtual currency and operating an unlicensed virtual currency exchange.”
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Randall Crater will have to spend 100 months in prison and will be supervised for another three years. On top of that, the Judge ordered Crater to pay more than $7.6 million to the victims that fell into Crater’s traps.
It is worth noting that, on July 21st, the federal jury convicted the “My Big Coin” founder on four counts of wire fraud, three counts of money laundering, and "one count of operating an unlicensed money transmitting business."
Carter launched its company, “My Big Coin,” in 2013 and claimed that it is a cryptocurrency service provider. The company operated as a crypto-related firm from 2014 to 2017.
During that period, Carter lured customers by promising that all cryptocurrencies on "My Big Coin" are backed by gold “or other valuable assets.” On top of that, the man reportedly claimed that "My Big Coin" has partnered with Mastercard, and coins can be transferred to "My Big Coin Exchange" at any time.
The Federal Bureau of Investigation (FBI) Special Agent Joseph R. Bonavolonta commented on the case by stating:
Spreading outright lies, Randall Crater defrauded dozens of victims out of more than $7.5 million, convincing them their cryptocurrency investments were backed by gold when in reality their hard-earned money went to funding his lavish lifestyle.
The US Attorney's Office noted that Carter used funds obtained during his multi-million dollar fraud scheme to purchase cars, artwork, jewelry, over $1 million in antiques, and a house.