A Crypto Business Owner Stole $6 Million In Cryptocurrency

Abdul Ghani

The founder of My Big Coin bought antiques and jewels with his money. He's likely to go to jail for a long time for cheating. The founder of the cryptocurrency service and cryptocurrency of the same name My Big Coin turned out to be a scammer. Randall Crater was therefore charged with four counts of wire fraud (wire fraud, computer fraud, wire fraud) and money laundering (via The Register). For the 51-year-old, that could mean several decades in prison. He is scheduled to be sentenced by a US court on October 27.

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The My Big Coin founder is likely to go to jail.Pixabay.com / Pixabay License

The founder cheated customers on the now inactive platform My Big Coin by a total of almost 6 million US dollars. Customers could invest real money in cryptocurrency. The tokens were held in wallets managed by the company. The promise: My Big Coins should be put back into physical money or into various services and products at any time.

Lying to customers and buying jewels

According to the Crunchbase database, the currency was valued at $310 at the time. There should be a maximum number of 30 million tokens, with a maximum annual payout of one million My Big Coins. Customers apparently also bought the currency but became skeptical over time. In 2014-2017, Crater and his team members lied about this, promising that the currency was backed by about $300 million in gold, oil, and other assets. This would give cryptocurrency some kind of real-world equivalent, similar to national physical currencies.

The fraudster was able to obtain a total of 6 million US dollars. He probably put part of the money into antiques and rare artifacts, including jewels, works of art, and a rare stone. This is probably worth almost 90,000 US dollars. In February 2019, he and other members were arrested by the FBI, including CEO John Roche and two assistants, Mark Gillespie and Michael Kruger.

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Member Of Freelancers Union (USA), Freelance Writer!, and Digital Creator. Ghani Mengal is an enthusiast Freelance blogger and digital marketer. His content has been published and featured on many popular blogs, websites, and publications. Including TeelFeed, LifeHack.org, Data-Driven Investor, TextSniper, Scientific Publication The Predict, The Startup, The Ascent, Heart Affairs, Illumination, And The List goes on.

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