A Businessman based in New York started payment services consist of wire fraud and fake transactions. The United States Department of Justice charged him for selling and marketing fraudulent Cryptocurrency.

According to the Department of Justice, Randall Crater founded My Big Coin Pay Inc. (My Big Coin) a company to provide virtual currency payment services. The headquarters of the company was based in Las Vegas, Nevada.

My Big Coin company was started to fraud its investors by selling fake virtual currencies. And claiming that it’s been backed by assets such as gold.

The United States Department of Justice mentions that Crater and his team started luring investors from 2014 to 2017. They told the investors that this “My Big Coins” has value and can be exchanged for goods, money or other cryptocurrency . But in reality, this is not the case.

Department of Justice website says,

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.

Crater was arrested on Wednesday (27th Feb) morning and he needs to appear the next day at the Court in the Middle District of Florida.

A lot of investors have become the victim in this scam and a total of $6 million USD is used by Crater for his personal use. This case is currently in court so these charges are merely allegations until the defendant is proven guilty as per the Department of Justice.

Let us know what you think about this scam? Share your thoughts in the comments below. 

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