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My Big Coin cryptocurrency firm founder gets 8 years in prison for fraud
The creator of a now-defunct cryptocurrency company was given a sentence of more than eight years in jail on Tuesday for cheating consumers and investors out of millions of dollars by falsely advertising a virtual currency called My Big Coin.
In the first sentencing of a cryptocurrency firm founder for a marketing scam, federal prosecutors had sought U.S. District Judge Denise Casper in Boston to sentence Randall Crater to 13 years in prison in order to set an example for future defendants.
She rejected Crater's argument that a 30-month jail sentence was enough to punish him for his misleading promises, including that My Big Coin was a genuine cryptocurrency backed by gold, even if Casper thought the request went too far.
Cryptocurrency is undoubtedly a more recent business venture and a 21st Century industry, according to Casper. However, the scam that was at the center of the plan was an old one.
Crater, who received a cumulative term of 100 months and was mandated to give up roughly $7.7 million, is anticipated to file an appeal. He apologized in court but said that he never intended to deceive anybody.
I had no intention of robbing anybody of their money, he said. That does not imply that I am not sorry.
In a prosecution that sprang out of a precedent-setting case by the U.S. Commodity Futures Trading Commission, a jury in July convicted 52-year-old Crater guilty of wire fraud and engaging in illegal financial activities.
One of the first court decisions declaring that a virtual currency might be regarded a commodity under the regulator's authority was the result of the CFTC's 2018 action against Crater and his defunct firm, Nevada-based My Big Coin Inc.
After obtaining Crater's indictment, the prosecution charged him with spreading false information about My Big Coin, a cryptocurrency that had a name that was similar to the well-known virtual currency bitcoin, which they claim caused customers and investors to lose $7.5 million between 2014 and 2017.
These misleading statements, according to the prosecution, included that My Big Coin was a genuine virtual currency that was backed by gold and that it was affiliated with MasterCard. He allegedly used the funds to purchase jewelry, ancient coins, vehicles, and other items.
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