My Big Coin founder Randall Crater convicted for $6 million crypto fraud

Rick Steves

Randall Crater, founder of My Big Coin Pay Inc., has been convicted by a federal jury for defrauding investors by marketing and selling fraudulent virtual currency.

Randall Crater, founder of My Big Coin Pay Inc., has been convicted by a federal jury for defrauding investors by marketing and selling fraudulent virtual currency.

My Big Coin was a purported cryptocurrency and virtual payment services company headquartered in Las Vegas, Nevada, which offered virtual payment services through a fraudulent digital currency, “My Big Coins”.

The token were marketed as a fully functioning cryptocurrency backed by $300 million in gold, oil and other valuable assets. Randall Crater also falsely told investors that My Big Coin had a partnership with MasterCard and that the token could readily be exchanged for government-backed paper currency or other virtual currencies.

None of these claims were true and Randall 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, the CFTC found.

The scheme operated from 2014 to 2017, the CFTC filed commodity fraud charges against Crater and My Big Coin in January 2018, as well as civil charges against CEO John Roche and two of Crater’s associates Mark Gillespie and Michael Kruger.

The jury found Crater to be guilty of four counts of wire fraud, which carries a maximum statutory penalty of up to 20 years in prison for each count, and three counts of money laundering, which carries a maximum statutory penalty of up to 10 years in prison for each count. He is scheduled to be sentenced on October. 27, 2022.

Earlier this month, the CFTC won the largest Bitcoin fraud case to date, worth $29 million. Financial Tree and individual defendants were found to have misappropriated millions of dollars of funds obtained from investors for personal use, made Ponzi payments to existing pool participants with new pool participants’ funds, and made false statements to explain their failure to return funds and deliver promised profits.

Financial Tree was found to have operated as a Ponzi scheme for years, trading only a small portion of the money taken in and misappropriating the rest – concealing that misappropriation through Ponzi payments, false accounts statements, and other material misrepresentations and omissions to victims of the Financial Tree Fraud.

Whistleblowers are eligible to receive between 10 and 30 percent of the monetary sanctions collected paid from the CFTC Customer Protection Fund financed through monetary sanctions paid to the CFTC by violators of the CEA.

Read this next

Digital Assets

Midas launches investment strategies for the ‘crypto winter’

Midas.Investments has released three new investment strategies on its custodial CeDeFi platform, creating new opportunities during the ‘crypto winter’.   The platform merges diverse approaches to digital asset management into single-click products to let investors gain steady profits in any market conditions — including the ongoing bear market. a custodial CeDeFi platform, CeDeFi: Unlocking the […]

Digital Assets

Bitcoin.com Wallet adds several ERC-20 tokens

The product expansion includes representatives of the DeFi world, the Metaverse, and the largest stablecoins.

Market News

Savvy Investors to Profit Whether the Stock Market Rebounds or Not

Equities have gone up enormously since the low. SP500 has gained 13.88% since June 17. In August, the indices drifted sideways. On Wall Street, veteran investors expect a move in either direction.

Industry News

Wall Street-backed MEMX obtains SEC approval for options trading platform

The company has raised more than $135 million in funding from 18 stock trading and investing heavyweights, including BlackRock, Citadel Securities, and Morgan Stanley.

Industry News

Amundi US launches ESG strategy that seeks to outperform S&P 500

Amundi’s Responsible investing team includes more than 45 specialists, and its ESG analysis covers more than 13,500 issuers across debt and equity.

Industry News

Verto launches embedded FX payments solution

The Verto API automates currency conversions, tracks payments and exchange rates in real-time, and is being launched in the follow-up of a $10 million in Series A funding last year.

Industry News

SEC awards over $16m to whistleblowers after another successful enforcement action

The program is 10 years-old and has arguably played a critical role in the Division of Enforcement’s ability to effectively detect wrongdoing, protect investors and the marketplace, and bring violators to justice.

Digital Assets

Ripple submits most succint explanation of Hinman issue in XRP lawsuit

It might be useful to get up to date as this could be the end of the road for the SEC.

Retail FX

TradingView integrates first Brazilian broker, Órama Investimentos

Órama offers all kinds of investment products, from fixed income to crypto-related funds.

<