My Big Coin Founder Convicted of Defrauding Investors of More Than $6M
Randall Crater was found guilty of peddling a cryptocurrency scam.
:format(jpg)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/2EFO4A2H6VFFPDP2LOVOQYXC24.jpg)
(Oleksandr Berezko /EyeEm/Getty Images)
/arc-photo-coindesk/arc2-prod/public/LXF2COBSKBCNHNRE3WTK2BZ7GE.png)
A federal jury has convicted Randall Crater, the founder of My Big Coin, of wire fraud and money laundering for selling fraudulent virtual currency, the U.S. Justice Department said Thursday.
- Crater’s firm offered virtual payment services through a fraudulent digital currency known as “My Big Coins,” which were marketed to investors between 2014 and 2017, according to court documents and trial evidence.
- Crater and his associates falsely claimed the coins were a functioning cryptocurrency backed by $300 million in gold, oil and other assets. They also falsely told investors the company had a partnership with MasterCard (MA) and that the crypto could be easily exchanged for fiat currency or other virtual currencies.
- Over the course of the scheme, Crater misappropriated over $6 million of investor funds for his own purposes, including spending hundreds of thousands of dollar on antiques, artwork and jewelry, according to the Justice Department.
- In 2018, the Commodity Futures Trading Commission charged Crater and My Big Coin with commodity fraud and also filed civil charges against the company’s CEO and two of Crater’s associates.
- Crater was convicted of four counts of wire fraud, which carries a maximum penalty of up to 20 years in prison for each count, and up to three counts of money laundering, which carries a maximum penalty of up to 10 years for each count.
- Crater is scheduled to be sentenced on Oct. 27.
Disclosure
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.
Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.