Home Altcoins News Randall Crater My Big Coin Pay Inc Arrested for Defrauding Scheme

Randall Crater My Big Coin Pay Inc Arrested for Defrauding Scheme

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Randall Crater, the founder of My Big Coin Pay Inc, has been charged for indictment in the District of Massachusetts for wire fraud and unlawful monetary transactions. He was arrested early this morning and set to appear in the Middle District of Florida and the US District Court.

The allegations of the indictment are that between the year 2014 and 2017, Crater along with others created a fraudulent virtual currency known as “My Big Coins” or “Coins.”  These coins were marketed to investors with false representations about the nature and the value of the coin.

They have further claimed that these cryptocurrencies were backed by gold and that they are fully functioning.  These coins are likely to be exchanged for goods, money or any other virtual currency. However, the reality is that these coins were not backed by any gold or any other valuable asset. Also, it was not readily transferrable either.

More than $6 million of investor funds have been misappropriated for personal use, which included the purchase of jewelry, antiques, artwork, etc.

A Landmark Ruling by Judge Rya W. Zobel of Massachusetts District Court ruled that “Virtual Currencies are commodities under CEA stating, “all goods, articles, services rights and interests in which contracts for future delivery are currently or in the future dealt in.” Therefore, established that the CFTC had the right to initiate enforcement action versus fraudsters in virtual currency.

Similarly, in India, the local police are busting several scam ICOs in India.

Bitstrades has been offering fraudulent Initial Coin Offering (ICO), and the Criminal Investigation Authorities of Gujarat, a state in India have booked five people for the offense.

Hardik Zadafiya, the founder of Bitstrades, has been arrested for charges framed under cheating and criminal breach of trust per the Indian Penal Code (IPC).  The other 5 who were booked under similar charges are on the run and are being tracked by the police. Several victims have filed complaints about being duped for a proposed value of $230,000; however, the police are suspecting that the scam could have been even more significant.

The investigating officer stated, “The majority investors that money in the racket is yet to come forward. We hope following the registration of the complaint. They will provide details of the cheating by the accused to the crime department.”

These scams are indicative of how due diligence is lacking in the cryptocurrency industry. However, reputed companies and exchanges are doing the needful to protect their investors from scams.

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Steven Anderson

Steven is an explorer by heart – both in the physical and the digital realm. A traveler, Steven continues to visit new places throughout the year in the physical world, while in the digital realm has been instrumental in a number of Kickstarter projects. Technology attracts Steven and through his business acumen has gained financial profits as well as fame in his business niche. Send a tip to: 0x200294f120Cd883DE8f565a5D0C9a1EE4FB1b4E9

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