BOSTON (AP) — The founder of a cryptocurrency and virtual payment services company has been found guilty by a federal jury of defrauding investors of $6 million and spending part of the money in antiques, works of art and jewelry.
Randall Crater, 51, of East Hampton, New York, was convicted Thursday in federal court in Boston of wire fraud, illegal money transactions and operating an unlicensed money transfer business, a said the US Attorney’s Office in Boston.
Crater founded Las Vegas-based My Big Coin Pay Inc. in 2013, offering virtual payment services through the digital currency, “My Big Coins,” which he marketed to investors between 2014 and 2017, said the prosecutors.
Crater and associates said the coins were a fully functional cryptocurrency backed by $300 million worth of gold, oil and other valuable assets, said the company had a partnership with MasterCard, and said the currency could easily be exchanged for government-backed or other paper money. virtual currencies, when in reality none of it was true, prosecutors said.
Crater embezzled more than $6 million in investor funds, authorities said.
“Mr. Crater saw the rising popularity of crypto as a chance to get rich quick through an unscrupulous fraud scheme disguised by flashy marketing tactics and outright lies,” said U.S. attorney Rachael Rollins.
Sentencing was scheduled for October 27.