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CFTC filed charges against ‘My Big Coin’ and its founder in 2018.
On Thursday, the United States Department of Justice made an announcement about the conviction of the founder of a fraud crypto scheme named My Big Coin Pay Inc. or My Big Coin—Randall Crater. The Justice Department made allegations on Crater for his involvement in defrauding investors and stealing of more than $6 million worth funds.
Further details from the DOJ outlined that the founder of ‘My Big Coin’ was convicted under four wire frauds, three allegations of monetary transactions in unlawful manner and one count of an unlicensed business that operates for money transmitting.
Criminal Investigations Group of the United States Postal Inspection Service’s inspector in charge—Eric Shen—who is also connected to the case, outlined that the accused have picked on investors willing to make crypto investments. Shen said that the victims thought they were making investments in crypto and this might add some value to their portfolio, but actually they ended up profiting the defendant.
The Department of Justice explained that Crater was seen to spend the money that he obtained from his frauds and victimizing the users, on buying luxurious items—including antiques, artwork and jewelry.
During the years between 2014 to 2017, My Big Coin was projected as a crypto scheme and lured many crypto investors. The DOJ further added that Crater and his fellow workers made false claims that the native coins, that was involved in the scheme, were projected as a completely operable crypto asset and it was also backed by $300 million worth assets including gold and oil.
The DOJ also claimed that people behind the fraudulent scheme also stated that they had partnered with financial payment giant Mastercard. They also said that their coins could be exchanged with other currencies including fiat as well as other digital assets.
The Justice Department clarified that the coins involved in the scheme were not having an actual backing of gold or any other assets. Neither they had any partnership with Mastercard nor the coins were transferable.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
