The Founder of My Big Coin Cryptocurrency Firm was Sentenced to Eight Years in Prison for Fraud
CFTC’s 2018 takes action against Crater and his defunct company for defrauding consumers and investors
Crater, who received a total sentence of 100 months and was ordered to forfeit approximately $7.7 million, is expected to file an appeal
The Commodity Futures Trading Commission’s 2018 lawsuit against
Crater and his defunct company, Nevada-based My Big Coin Inc., resulted in one of the first court rulings holding that a virtual currency could be considered a commodity within the regulator's jurisdiction.
On Tuesday, the founder of a now-defunct cryptocurrency company was sentenced to more than eight years in prison for defrauding consumers and investors out of millions of dollars by falsely advertising My Big Coin.
Federal prosecutors had asked U.S. District Judge Denise Casper in Boston to sentence Randall Crater to 13 years in prison to set an example for other defendants in the first sentencing of a cryptocurrency company founder for a marketing scam.
She rejected Crater's argument that a 30-month prison sentence was sufficient punishment for his false promises, including that My Big Coin was a real cryptocurrency backed by gold, even though Casper thought the request was excessive.
“According to Casper, "cryptocurrency is definitely a newer enterprise, a newer market, a market for the twenty-first century." However, the scam was an age-old part of the plan.”
Crater, who received a sentence of 100 months overall and was mandated to hand up approximately $7.7 million in forfeiture, is anticipated to file an appeal. He apologized but maintained that he never intended to deceive anyone in court.
He defended himself by saying, "I had no desire to take money from anyone”. I'm still sorry, though, I suppose.
In a prosecution that stemmed from 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.
The CFTC's 2018 action against , Nevada-based My Big Coin Inc., resulted in one of the first court decisions declaring that a virtual currency could be considered a commodity under the regulator's authority.
The prosecution charged Crater with spreading false information about My Big Coin, a cryptocurrency with a name similar to the well-known virtual currency Bitcoin, which they claim cost customers and investors $7.5 million between 2014 and 2017.
Also Read - India Crypto Ecosystem Failed Without Tax Cut
