BOSTON – The founding father of “My Massive Coin,” a purported cryptocurrency and digital cost providers firm headquartered in Las Vegas, Nev., was sentenced right now in federal court docket in Boston for advertising and promoting fraudulent digital foreign money and working an unlicensed digital foreign money trade.
Randall Crater, 52, of Lake Mary, Fla., was sentenced by U.S. District Court docket Choose Denise J. Casper to 100 months in jail and three years of supervised launch. Crater was additionally ordered to pay forfeiture of $7,668,317 and restitution in an quantity that shall be decided at a later date. In July 2022, Crater was convicted by a federal jury of 4 counts of wire fraud, three counts of illegal financial transactions and one depend of working an unlicensed cash transmitting enterprise.
“For almost 4 years, Mr. Crater perpetrated a brazen fraud scheme that preyed on buyers and prospects who put their religion in him and his faux enterprise, leading to sufferer losses of over $7.5 million. He noticed the rising crypto market as a chance to create the phantasm of My Massive Coin as a official service from which buyers would yield a revenue. His lies and deception inflicted actual trauma, ache and hardship on the lives of 55 particular person victims and their households who funneled their cash into financial institution accounts Mr. Crater managed and used to finance his extravagant way of life,” mentioned United States Legal professional Rachael S. Rollins. “I hope right now’s sentence sends a robust message that fraudsters – in any market – who search to take advantage of others shall be discovered and dropped at justice.”
“Spreading outright lies, Randall Crater defrauded dozens of victims out of greater than $7.5 million, convincing them their cryptocurrency investments had been backed by gold when in actuality their hard-earned cash went to funding his lavish way of life,” mentioned Joseph R. Bonavolonta, Particular Agent in Cost of the Federal Bureau of Investigation, Boston Division. “The hurt carried out right here was important—delayed retirement, tuition cash misplaced, lives turned the other way up—all due to one man’s greed. Immediately’s prolonged sentence doesn’t proper these wrongs, however it does guarantee Mr. Crater gained’t be victimizing anybody else.”
“The joy of being a part of a brand new market in cryptocurrency might be very engaging to those that need to be in on the forefront; however on this case they discovered their funding was nothing greater than an funding in Mr. Crater’s lavish way of life. Postal Inspectors remind customers to totally examine all provides and don’t depend on what they’re instructed, even when they imagine there’s safety of their investments and deposits by way of the identify recognition of an alleged famend companion. On this case it was all lies, and now Mr. Crater shall be held accountable for his unlawful actions,” mentioned Eric Shen, Inspector in Cost of the U.S. Postal Inspection Service’s Felony Investigations Group.
Based in 2013, My Massive Coin claimed to supply digital cost providers by way of a fraudulent digital foreign money (or “Cash”), which Crater marketed to buyers between 2014 and 2017 utilizing misrepresentations. Crater, together with brokers he paid to advertise the scheme, claimed that the Cash had been a completely functioning cryptocurrency backed by gold and that My Massive Coin had a partnership with MasterCard. Crater additionally operated the My Massive Coin Trade, which was marketed as a completely functioning foreign money trade the place Cash may very well be transferred for government-backed fiat foreign money or different digital currencies. Crater and others made these misrepresentations by way of social media, the web, e-mail and textual content messages.
In actuality, the Cash weren’t backed by gold or different beneficial property, didn’t have a partnership with MasterCard and weren’t readily transferable on the My Massive Coin Trade. Over the course of the scheme, Crater obtained over $7.5 million from buyers and prospects, which he used to purchase a home, vehicles, and over $1 million in antiques, art work and jewellery.
In January 2018, the Commodity Futures Buying and selling Fee (CFTC) alleged that My Massive Coin was a fraud. The CFTC additionally filed civil expenses towards Crater and several other of his associates for his or her involvement within the scheme. The civil motion was stayed on March 8, 2019, pending decision of the prison case.
U.S. Legal professional Rollins; Kenneth A. Well mannered, Jr., Assistant Legal professional Normal of the Justice Division’s Felony Division; FBI SAC Bonavolonta; and USPIS Inspector in Cost Shen made the announcement right now. The CFTC, the Inside Income Service, and the U.S. Division of the Treasury Monetary Crimes Enforcement Community additionally offered beneficial help with the matter. Assistant U.S. Legal professional Christopher J. Markham, of Rollins’ Securities, Monetary & Cyber Fraud Unit, and Trial Legal professional Babasijibomi Moore of the Felony Division’s Fraud Part prosecuted the case.
