In the past years, cryptocurrency has been making big waves across various parts of the globe. As a matter of fact, virtual currencies have been popping up left and right, with My Big Coin company being no exception. However, just last Wednesday, the founder of the business was charged with fraud.
To help lure customers, the CEO and founder of the company, Randall Crater claimed that My Big Coin’s operations were supported by gold, reports Reuters. This was not the case, resulting in charges placed by the United States government. According to the Department of Justice, the company is being charged with indictment as well as seven counts of wire fraud. In addition, the business is also being charged with unlawful money transactions, reports Reuters.
Under Crater’s business, CCN states that there was more than $6 million investor money that was used solely for personal purposes. However, CCN points out that a part of the indictment of Crater seems questionable, particularly those that say that Coins were not exchangeable.
However, Crater’s lawyer, Ryan Chandler remains steadfast and calm in the eye of the storm. His client plans to plead not guilty.
A Closer Look
According to CCN, My Big Coin was founded in 2013. It was formed primarily to allow users to exchange currencies anonymously. Under this program, the company proclaimed that each crypto token was worth $310 each. All throughout their operations, the company claimed that they were backed by 300 million in gold and other solid assets.