The United States Department of Justice (DoJ) said in a Wednesday press release that it has charged, Randall Crater, a New-York based entrepreneur for involvement with a fraudulent virtual currency scheme.
Randall Crater is alleged to be the founder and principal operator behind “My Big Coins” a cryptocurrency scheme that defrauded investors through misrepresentations about its nature and value.
As per the DoJ release:
Crater and his team created and marketed the “My Big Coins” cryptocurrency to investors with false information that the coin was fully functional and backed by real-world assets like gold.
Investors were also falsely led to believe that the cryptocurrency could serve as a means of payment for goods or traded for cash or other cryptocurrencies.
In reality, the DoJ claims that “My Big Coins” were neither backed by any gold assets. Also, the coins were not readily exchangeable as Crater, and his team led investors to believe while marketing the coins via the internet.
The release claims that after pooling funds from unsuspecting investors, Crater misappropriated it by spending up to $6 million on acquiring luxurious items like artwork and jewelry.
The DoJ charged Crater with four counts of wire fraud and three counts of unlawful monetary transactions in line with the My Big Coins scheme.
Randell Crater is due to appear in court and remains non-guilty until the court confirms that the accusations are true.
It is still unclear at this time, how many people can fell for the My Big Coin scheme although the numbers could be huge.
Our findings show that the Twitter account (last active on 14th Feb) representing the allegedly fraudulent project has over 260,000 followers while according to the U.S DoJ, the cryptocurrency has existed since 2014.
Crater’s case is only one of the many crypto-crime related charges filed in recent weeks. Stmarket.co reported last month that Israeli crypto entrepreneur, Moshe Hogeg was charged and subsequently denied allegations for misappropriating $4.6 million of investor funds.
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