Man Behind “My Big Coin” Scam Charged by DOJ
A New York Man has been charged with four counts of wire fraud and three counts of unlawful monetary transactions after peddling a false coin to investors, the Department of Justice revealed on February 27, 2019.
A World of Crime
Crime exists in many forms, even more so when it comes to cryptocurrency. Initial coin offering (ICO) scams became so rampant that the United States Securities and Exchange Commission (SEC) was forced to shut down dozens in 2018, and South Korea has resorted to banning them altogether. There are also SIM swap scams, which have been heavily persecuted all over the world.
The US Department of Justice has charged a New York-based man with wire fraud and unlawful monetary transactions and this was announced via a press release on February 27, 2019.
Big Coins, Big Crimes
Before his arrest, Randall Crater, the man in question, had been running My Big Coin Pay Inc., which claimed to be a cryptocurrency as well as a payment services company with its headquarters in Nevada. The company had run from 2014 to 2017 and during that time, it had been marketing a currency called My Big Coins to its investors.
The coin had been marketed as a legitimate one that was pegged to assets such as gold and was also said to be tradable for other cryptos and cash. This, the DOJ says, was a lie. In reality, Crater had been engaging in wire fraud and unlawful monetary transactions, as well as stealing up to $6 million in investors’ funds for his own personal use such as the purchase of artwork and antiques.
The press release noted:
“The charges in the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law,”
Not to Be Trusted
In the press release, it was said that Crater and his associates had reached out to investors via their website and social media as well as direct contact. This is reminiscent of a guide that was released by the UK government on how to spot common scams which included increased use of social media by criminals to dupe their victims.
It is interesting to note that the firm had claimed that their Cryptocurrency was fully functional and easily tradable but, form all indications, was not listed on any known cryptocurrency Exchange.