• Randall Crater – the founder of crypto scheme “My Big Coin” – was sentenced to 100 months in prison for defrauding investors of $7.5 million.
• Federal prosecutors had originally suggested a 13-year sentence for Crater, but Judge Denise Casper in Boston ruled that he should be jailed for 8 years and 4 months.
• Crater lured investors into his fraudulent project by lying that it was backed by gold, and falsely claiming a partnership with Mastercard.
Randall Crater Sentenced to Over 8 Years in Jail
Randall Crater, the founder of cryptocurrency scheme “My Big Coin”, has been sentenced to 100 months (8 years and 4 months) in jail for defrauding investors of $7.5 million between 2014 and 2017. U.S District Judge Denise Casper in Boston chose this sentence over the previously suggested 13-year punishment from federal prosecutors.
Crater Lured Investors with False Promises
Crater enticed investors into his project by falsely claiming that it was backed by gold and had a partnership with Mastercard – despite sounding similar to Bitcoin, the largest cryptocurrency by market capitalization. He also used stolen funds to purchase luxury items such as cars, artwork, jewelry and antique coins for himself.
Sentence Serves as Warning To Other Crypto Scammers
The U S District Judge Denise Casper said that „certainly cryptocurrency is a newer enterprise, a newer market..but the scheme at its core was age old – fraud“. The prosecutors‘ suggestion of a 13-year sentence would have served as an example to other potential scammers who attempt similar schemes with cryptocurrencies or other financial instruments.
Cryptocurrency Markets Attract Fraudulent Activity
Unfortunately, the relative newness of cryptocurrency markets makes them susceptible to fraudulent activity due to lack of regulation on these exchanges compared to more traditional asset classes such as stocks or commodities which are regulated more heavily . As more people become interested in investing in crypto markets , there is likely to be an increase in attempts at fraud on unsuspecting traders .
Ultimately , Randall Crater’s sentencing serves as an important reminder that any investor considering trading digital assets must do their due diligence before entering any investments . It also highlights how important regulations are on these markets – both from authorities like SEC ensuring proper security protocols are followed , as well as self surveillance from traders themselves when participating in any crypt related activities online .