In connection with a Bitcoin fraud, Randall Crater will soon be punished.
On Tuesday, a man from New York convicted of conducting a cryptocurrency scheme that duped investors out of $6 million is slated to be sentenced in a federal court in Massachusetts.
Randall Crater is 51 years old and lives in East Hampton, New York. He is the founder of My Big Coin, which is meant to provide cryptocurrency and virtual payment services and has its headquarters in Las Vegas.
According to the prosecutors from the office of the United States Attorney for the District of Massachusetts, Rachael Rollins, Carter offered virtual payment services through a fraudulent digital currency called “My Big Coins.” The prosecutors said that Carter fraudulently marketed this currency to investors between 2014 and 2017.
According to federal officials, Crater and his associates falsely asserted that Coins was a cryptocurrency backed by $300 million worth of gold, oil, and other valuable assets. According to investigators, he further misled investors by claiming that My Big Coin was with MasterCard.
He can easily convert the coins for government-backed paper or virtual currencies. He reportedly told investors that Coins are tradeable for other virtual currencies.
The prosecution maintained that this was inaccurate. Officials believe that Crater misappropriated more than $6 million in investor funds throughout the conspiracy and used those monies to his advantage. The Crater is accused of spending hundreds of thousands of dollars on antiques, artwork, and jewelry.
In July 2022, Crater was found guilty of the charges.
Crater and his company were charged with commodity fraud by the Commodity Futures Trading Commission (CFTC) in January 2018. Additionally, the CFTC has brought civil accusations against John Roche, the chief executive officer of My Big Coin. Likewise, Mark Gillespie and Michael Kruger are Crater’s colleagues.
Crater was found guilty of four counts of wire fraud. Each carries a maximum sentence of up to 20 years in prison. On three counts of money laundering, each carries a maximum sentence of up to 10 years in prison. The maximum sentence for each count of money laundering is ten years.