By Kimberly Crain
The founder of crypto firm My Big Coin, Randall Crater, was sentenced to a 100-month jail term and set to settle a $7.6M court fine for conducting crypto crimes. A court order dated January 31 demanded Crater follow the legal process for exposing investors to considerable losses in a deceptive scheme.
In July 2021, the legislators accused Crater of engaging in unregulated crypto transactions and committing wire fraud that contravened U.S. law.
U.S. Regulators Cracking Down Crypto Crimes
The desire to increase investors’ value inspired Crater to launch a crypto firm, My Big Coin, in 2013. The firm was operational for years until 2017, when Crater’s high appetite for wealth creation prompted him to engage in deceptive marketing.
The bankrupt crypto firm provided the customers with misleading information concerning the firm’s digital products and assets. The crypto firm claimed to offer tokens easily transacted to the U.S. dollar currency.
Reportedly, the company claimed to partner with Mastercard to provide gold-backed coins that were in high demand between 2014 to 2017. Crater’s futile marketing efforts generated the company $7.6M, which was used to meet personal needs.
Also read:As per the investigators’ report, Crater was accused of rerouting the company revenue to acquire personal cars, exclusive fashion brands and rent expensive apartments.
Crater’s deceptive moves compelled U.S. Attorney Racheal Rollins to take action in scrutinizing the matter. In support of the devastated investors who lost their hard-earned money in the Crater pump and dump scheme, Rollins tasked the U.S. legal team to take action.
Rollins lamented that Crater’s move exposed 55 investors and their families to financial hardship after being enticed by the crypto firm to invest their resources in a brazen fraudulent investment.
Craters Face Legal Sanctions
In his defensive responses on YouTube on October 21, Crater argued that the affected victims used their credit cards multiple times, which was against the company policy.
Crater’s unlawful actions violated U.S. Commodity Futures Trading Commission (CFTC) laws. CFTC regulators submitted their charges in 2018 to the Massachusetts District Court. CFTC’s legal action inspired the other regulators, including the Department of Justice (DoJ), to probe the case in February 2019.
The January 31 DoJ directed Crater to serve a 100-month jail term and pay a $7.6M penalty. Later, the DoJ confirmed to keenly observe Crater’s move for the next three years after completing detention charges.
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