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Cryptocurrency Scammer Sentenced to 8 Years in Prison for $7.5 Million Fraud Scheme
BOSTON, MA – Randall Crater, 52, of Lake Mary, Florida, was sentenced to 100 months in prison and three years of supervised release for his role in a multi-million-dollar cryptocurrency fraud scheme.
Crater, the founder of My Big Coin, a purported cryptocurrency and virtual payment services company, was convicted by a federal jury in July 2022 of four counts of wire fraud, three counts of unlawful monetary transactions, and one count of operating an unlicensed money transmitting business.
The scheme, which operated from 2014 to 2017, saw Crater and his associates claiming that My Big Coin’s virtual currency (or ‘Coins’) were backed by gold and had a partnership with MasterCard. However, in reality, the Coins were not backed by any valuable assets and did not have a partnership with MasterCard.
Crater used the money obtained from investors and customers to fund his extravagant lifestyle, buying a house, cars, and over $1 million in antiques, artwork, and jewelry. He also used the money to deposit into bank accounts he controlled.
United States Attorney Rachael S. Rollins stated that Crater’s actions inflicted real trauma, pain, and hardship on the lives of 55 individual victims and their families. Rollins added that the sentence sends a strong message that fraudsters who seek to exploit others will be found and brought to justice.
Crater was ordered to pay forfeiture of $7,668,317 and restitution in an amount that will be determined at a later date. His sentence is a result of his brazen fraud scheme that preyed on investors and customers who put their faith in him and his fake business.
Crater’s scheme is a reminder to consumers to thoroughly investigate all offers and not rely on what they are told, even if they believe there is protection in their investments and deposits through the name recognition of an alleged renowned partner.
Key Facts
- State: Massachusetts
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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