- Crater was charged with money laundering and wire fraud
- Unsuspecting investors lost over $6 million between 2014 and 2017
My Big Coin crypto platform and payment service founder Randall Crater received a sentence of more than eight years in prison for selling and marketing a fraudulent digital asset and running an unlicensed crypto exchange, CoinDesk reported, citing a statement from the US Attorney’s Office released on Wednesday, February 1.
He was convicted of wire fraud last year
Crater was charged with money laundering and wire fraud by the Commodity Futures Trading Commission in 2018 and subsequently convicted. According to a Boston federal court ruling, he is also subject to supervised release of three years after the initial eight.
His company provided virtual payment services through “My Big Coins” digital assets, which emerged to be fraudulent. They were marketed and sold to unsuspecting investors between 2014 and 2017, who lost over $6 million in total.
The 52-year-old founder and his associates claimed the crypto had solid backing: an impressive $300 million in oil, gold, and other tangible assets. They lied to investors that they had a contract with MasterCard and that the crypto could be exchanged for other virtual assets or fiat currency easily.
According to a statement by US Attorney Rachael Rollins:
Crater saw the growing crypto marketplace as an opportunity to create the illusion of My Big Coin as a legitimate service from which investors would yield a profit. His lies and deception inflicted real trauma, pain and hardship on the lives of 55 individual victims and their families who funneled their money into bank accounts.
How to avoid crypto scams
Here are some tips to avoid crypto scams:
Verify the source: Be cautious of unsolicited offers and be sure to verify the source of any investment opportunity. Scammers often create fake websites and impersonate legitimate companies.
Research thoroughly: Before investing, research the crypto project, its team members, and their background. Look for red flags like unrealistic promises, lack of transparency, or an anonymous team.
Check for security measures: Make sure the crypto exchange or wallet you use has strong security measures in place, such as two-factor authentication and a secure login process.
Avoid too-good-to-be-true offers: Be wary of promises of high returns with low risk. Most legitimate investment opportunities come with some level of risk.
Seek advice: Consider consulting a financial advisor or doing more research before making any investment decisions.
Keep your private keys safe: Your private keys give you access to your crypto assets, so be sure to keep them safe. Never give them to anyone or share them online.
Look for red flags: Be cautious of things like spelling and grammar mistakes, pressure to act quickly, and requests for personal information.
