Randall Crater was ordered to pay back the millions lost by victims of his fraudulent crypto scheme and spend 100 months in jail followed by a three-year supervised release.
“My Big Coin” founder Randall Crater was sentenced to 100 months in prison and ordered to pay more than $7.6 million to those involved in his fraud scheme.
The US Department of Justice said Jan. 2. On December 31, United States District Judge Denise Casper sentenced Crater in Massachusetts.
The decision comes after a federal jury indicted Crater on July 21 on four counts of wire fraud, three counts of illegal financial transactions, and one count of operating an unauthorized money transfer. My Big Coin was founded by Crater in 2013 and falsely marketed as a cryptocurrency payment service, attracting victims between 2014 and 2017.
Crater said that My Big Coin is a fully functional gold-backed cryptocurrency and that the platform has a partnership with Mastercard. Crater also has a “My Big Coin Exchange” market, advertised as a crypto exchange where coins can be exchanged for US dollars and other fiat currencies.
A significant portion of the $7.6 million raised by Crater and his sales team went to the home, several cars, and more than $1 million in antiques, art, and jewelry. U.S. Attorney Rachael Rollins said in a statement that the damage caused by Crater has caused its victims’ significant personal injury and financial hardship:
“For nearly four years, Mr. Crater perpetrated a heinous fraud scheme that defrauded investors and customers who trusted him in his fake business, resulting in losses of over $7.5 million.”
“His lies and deceit caused real harm, pain, and hardship in the lives of 55 victims and their families who deposited their money into bank accounts controlled by Mr. Crater and used the funds he lives a terrible life”, he added.
Even after being convicted, Crater continued to protest his innocence, saying in an October article. 21 YouTube videos showing that the My Big Coin credit card is available to say the investor testified under oath to use the card multiple times.
The trial against Crater began on September 1. On February 25, 2018, former Massachusetts District Judge Rya Zobel ruled against a complaint brought by the United States Commodity Futures Trading Commission (CFTC).
The Justice Department filed criminal charges against Crater on February 19, 2019. After Crater’s 100 months in prison, he will be released on probation for the next three years.
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