NEVADA
The founder and principal operator of My Big Coin Pay Inc. (My Big Coin), a purported cryptocurrency and virtual payment services company headquartered in Las Vegas, Nevada, was named in an indictment unsealed Wednesday.
Randall Crater was chaged for his alleged participation in a scheme to defraud investors by marketing and selling fraudulent virtual currency.
Crater, 48, of East Hampton, New York, was charged in an indictment filed in Massachusetts with four counts of wire fraud and three counts of unlawful monetary transactions.
Crater was arrested Wednesday morning, officials stated.
The indictment alleges that between 2014 and 2017, Crater and others created the fraudulent virtual currency “My Big Coins” or “Coins” and marketed this fraudulent currency to investors using misrepresentations about its nature and value.
Crater and his associates allegedly falsely claimed that Coins were a fully functioning cryptocurrency backed by valuable assets such as gold. Crater and his associates also allegedly told investors that Coins could be readily exchanged for goods, cash or other virtual currencies.
As alleged in the indictment, Crater and his associates solicited investors and distributed these misrepresentations through websites and social media affiliated with My Big Coin, as well as by direct communications with investors and prospective investors.
In reality, Coins were not backed by gold or any other valuable assets and were not readily transferable, the indictment alleges.
Instead, Crater allegedly misappropriated over $6 million in investor funds for personal use, including to purchase artwork, antiques, jewelry and other luxury items, according to officials.
Crater presumed innocent unless found guilty.