The United States Department of Justice (DoJ) has charged a New York-based operator of an indicated cryptocurrency installment benefits firm with wire fraud and monetary transactions. The DoJ reported the allegations in a press release on Feb. 27.
As indicated by the release, New York citizen Randall Crater established and managed with My Big Coin Pay Inc. (My Big Coin), an indicated cryptocurrency and virtual payments services headquartered in Las Vegas, Nevada. From 2014 to 2017, Crater and his partners purportedly built up a fake cryptocurrency “My Big Coins” and marketed it to investors.
The accused purportedly lured financial specialists by claiming that the coin was a completely working virtual currency pegged to profitable physical resources like gold, which could be traded for merchandise, money, or different cryptocurrencies. The DoJ guarantees that, in reality, this was not the case.
The prosecution expresses that Crater directed four counts of wire misrepresentation and unlawful monetary transactions, just as misused more than $6 million in financial investors funds for individual use. In any case, the DoJ further noticed that “the charges in the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.”
Prior in February, a claim in a U.S. area court in New York guaranteed that investors had been misled into putting $2 million dollars in the cryptocurrency MCash. The filing states “Not only was the MCash Token not properly registered with the U.S. Securities and Exchange Commission but more importantly, in connection with selling the MCash Token. Defendants made numerous misrepresentations and omissions that induced Plaintiff to invest $2 million.”
Last December, research from the Wall Street Journal revealed that hundreds of cryptocurrency offerings showed signs of fraudulent activity, doubtful returns, and plagiarism. White papers of more than 2,000 of the 3,291 researched activities apparently contained sentences with attracting terms, for example, “nothing to lose, ensured benefit, return on investment, highest return, high return, funds profit, no risk, and little risk.”