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Crime Boss Behind Cryptocurrency Scheme Convicted, Faces Up to 140 Years in Prison
A federal jury in New York has convicted Randall Crater, 51, of East Hampton, of running a cryptocurrency scheme that defrauded investors out of millions of dollars.
According to court documents, Crater founded My Big Coin Pay Inc. (My Big Coin), a purported cryptocurrency and virtual payment services company based in Las Vegas, Nevada, and offered virtual payment services through a fraudulent digital currency called ‘My Big Coins.’
Crater and his associates falsely claimed that Coins were backed by $300 million in gold, oil, and other valuable assets and that they had a partnership with MasterCard. In reality, Coins were not backed by any assets, did not have a partnership with MasterCard, and were not readily transferable.
Between 2014 and 2017, Crater misappropriated over $6 million of investor funds for his own personal gain, including spending hundreds of thousands of dollars on antiques, artwork, and jewelry.
Crater was convicted of four counts of wire fraud, which carries a maximum statutory penalty of up to 20 years in prison for each count, and three counts of money laundering, which carries a maximum statutory penalty of up to 10 years in prison for each count.
He is scheduled to be sentenced on October 27 and could face up to 140 years in prison. The FBI, USPIS, and CFTC investigated the case, and Trial Attorney Babasijibomi Moore of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Christopher J. Markham for the District of Massachusetts are prosecuting the case.
The case highlights the dangers of cryptocurrency scams and the importance of doing thorough research before investing in any virtual currency.
Key Facts
- State: New York
- Category: Cybercrime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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