My Big Coin Crypto Project Founder Is Charged With Investment Fraud
The founder of My Big Coin, a crypto company based in Nevada, has been recently arrested for fraud. The police enforcement affirms that the man has defrauded people in a $6 million USD scheme in order to buy My Big Coin, a token that was allegedly backed by gold.
Named Randall Crater, the founder was the main operator of My Big Coin Pay Inc and he has been arrested in Florida, despite being a New York citizen. The charges were filed in a federal court in Boston with seven counts of wire fraud and also one for unlawful monetary transactions.
My Big Coin was sued last year by the U. S. Commodity Futures Trading Commission. At the time, both the man who was arrested and three of his associates by then were accused of scamming people with the company.
New York Man Charged with Cryptocurrency Scheme https://t.co/TasvuNtxOZ
— Justice Department (@TheJusticeDept) February 27, 2019
In this case, the lawsuit ended in one of the first cases in the U. S. in which a crypto was actually considered to be a commodity by the legal system, which was hailed as a victory for some and worried some other people.
From 2014 to 2017, Crater and his associates tried to defraud several investors using My Big Coin. The claims where that you could trade on any crypto exchange and it was digitally backed with gold, therefore, it would be very valuable. The company affirmed that it had 300 million USD in gold backing the project in January 2015.
Also, the site from the company has falsely claimed that the currency could be transferred to any person and that several stores accepted it. None of this was the truth, in fact, as no exchange ever accepted the fake tokens and neither merchants.
The prosecutors affirm that Crater used the $6 million USD for his personal use instead of investing and that he was able to buy jewelry and artwork with the sum. The money came from at least 28 customers.
Crater’s lawyer did not talk to the press until the time of this report and the Crater himself affirmed in the court papers that he is innocent from all the charges.
Regulators Against Scammers
This case is just one among many in which the U. S. regulators are trying to prosecute people who have used cryptos in order to defraud investors. Unfortunately, several of these cases are happening lately and the authorities are interested in curbing this kind of activity.
There is also the issue of several companies which are not regulated. While not all of them are scams, the regulators generally chase them in order to make sure that they will not harm investors in any way.