My Big Coin Cryptocurrency Company’s Founder Was Sentenced To 8 Years In Prison For Fraud
The founder of a defunct cryptocurrency company was sentenced to over eight years in prison on Tuesday for defrauding customers and investors out of millions of dollars by falsely advertising a virtual currency called My Big Coin.
In the first sentencing of a cryptocurrency company founder for marketing fraud, federal prosecutors had urged U.S. District Judge Denise Casper in Boston to sentence Randall Crater to 13 years in prison to set an example for other defendants.
She rejected Crater’s argument that a 30-month prison term was enough to punish him for his false claims, including that My Big Coin was a real cryptocurrency backed by gold, even though Casper thought that request went too far.
According to Casper, cryptocurrency is undoubtedly a more recent business venture and a 21st Century market. However, the fraud at the centre of the scheme was an old one.
Crater, who received a total sentence of 100 months and was mandated to give up nearly $7.7 million, is anticipated to file an appeal. He apologized in court but insisted that he never intended to defraud anyone.
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I had no intention of robbing anyone of their money, he remarked. That does not imply that I am not sorry.
In a July prosecution that grew out of a precedent-setting case by the U.S. Commodity Futures Trading Commission, a jury found 52-year-old Crater guilty of wire fraud and engaging in illegal financial transactions.
One of the first court decisions holding that a virtual currency could be considered a commodity within the regulator’s jurisdiction resulted from the CFTC’s 2018 lawsuit against Crater and his defunct company, Nevada-based My Big Coin Inc.
After obtaining Crater’s indictment, the prosecution charged him with spreading false information about My Big Coin. This cryptocurrency had a name similar to the well-known virtual currency bitcoin, which they claim caused customers and investors to lose $7.5 million between 2014 and 2017.
They claimed that My Big Coin was a genuine virtual currency, was backed by gold, and had a business relationship with MasterCard (MA.N). He allegedly used the funds to purchase jewelry, antique coins, cars, and other items.
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