My Big Coin Founder Convicted of Defrauding Investors of More Than $6M

Randall Crater was found guilty of peddling a cryptocurrency scam.

AccessTimeIconJul 21, 2022 at 10:06 p.m. UTC
Updated Jul 22, 2022 at 1:49 p.m. UTC
Consensus 2023 Logo
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Nelson Wang is CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.

Consensus 2023 Logo
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

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 a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Nelson Wang is CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.


Learn more about Consensus 2023, 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.


CoinDesk - Unknown

Nelson Wang is CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.