The United States Department of Justice (DoJ) recently indicted Randall Crater, the founder of My Big Coin Pay Inc., the company behind the cryptocurrency, My Big Coin. According to the court, the firm had falsely claimed that the virtual asset could readily be exchanged for goods, other cryptocurrencies, and fiat. They had also stated that valuable assets such as gold back the digital currency.
Sole Operator of My Big Coin Pay Inc. Gets Indicted
Based on the court document, Randall Crater, a 48-year-old man and the sole operator of My Big Coin was arrested on February 27. This was after an investigation by the Federal Bureau of Investigation, and the U.S. Postal Inspection Service was carried out. What was unraveled, led to the arrest of the New York resident who allegedly misled people to believe the nature and value of My Big Coin?
The court document outlined that from 2014 to 2017, the founder and others marketed the product on websites and social media as a cryptocurrency that is backed by assets such as gold. They also claimed it could be exchanged for goods, virtual currencies, and even fiat money. Carter allegedly made away with $6 million which was raised by these investors and used it for his gains.
Allegations of Selling Fraudulent Virtual Currency and Defrauding
The law court, on the other hand, has indicted Carter for selling a fraudulent virtual currency and defrauding investors. The latter has led to the four counts of wire fraud and three counts of unlawful monetary transactions which he has been charged with. However, the court noted that these are merely allegations and as such, the accused is believed to be innocent unless proven guilty beyond a reasonable doubt in court.
When it comes to the cryptocurrency industry, the law has been on the tail of some companies which have raised the suspicion of the authorities. In 2018 alone, several operators of companies had been indicted. BTCNN on January 21 reported that two executives at Komid cryptocurrency exchange were charged for “fraud, embezzlement, and misconduct.”
More Cryptocurrency Companies Face the Force of the Law
On March 21, BTCNN also informed that Payza, a payment processing platform was charged for money laundering. The company’s founders were also accused of running an unlicensed Internet-based money service which was able to process over 250 million dollars. The same was reported of three Upbit executives who were indicted for fraud on December 21.