Founding father of “My Giant Coin” Randall Crater has been sentenced to 100 months in jail and ordered to pay over $7.6 million to the sufferers of his fraudulent scheme. 

The U.S. Division of Justice said on Jan. 31 that Crater used to be sentenced by means of United States District Court docket Pass judgement on Denise Casper in Massachusetts.

The sentence comes after Crater used to be convicted by means of a federal jury on July 21 on 4 counts of cord fraud, 3 counts of illegal financial transactions and one rely of working an unlicensed money-transmitting trade.

My Giant Coin used to be based by means of Crater in 2013 and falsely advertised as a cryptocurrency payment service, luring sufferers between 2014 and 2017.

Crater claimed the cash on My Giant Coin have been absolutely purposeful cryptocurrencies subsidized by means of gold and that the platform had a partnership with Mastercard.

Crater additionally advertised the “My Giant Coin Change,” marketed as a crypto change the place the cash might be swapped for U.S. bucks and different fiat currencies.

Randall Crater’s LinkedIn account picture. Symbol: LinkedIn

A good portion of the $7.6 million acquired by means of Crater and his advertising and marketing workforce went towards a space, a number of vehicles and over $1 million in antiques, paintings and jewellery.

U.S. Lawyer Rachael Rollins stated in a observation the wear achieved by means of Crater inflicted a major quantity of trauma and fiscal hardship on his sufferers:

“For almost 4 years, Mr. Crater perpetrated a brazen fraud scheme that preyed on buyers and consumers who put their religion in him and his faux trade, leading to sufferer losses of over $7.five million.”

“His lies and deception inflicted actual trauma, ache and hardship at the lives of 55 person sufferers and their households who funneled their cash into financial institution accounts Mr. Crater managed and used to finance his extravagant way of life,” she added.

Comparable: 800 victims of ‘massive’ Bitconnect fraud to receive $17M restitution

Even after his conviction, Crater persisted to protest his innocence, pointing out in an Oct. 21 YouTube video {that a} My Giant Coin bank card did in truth exist and claiming that an investor testified beneath oath to having used the cardboard a couple of instances.

Felony motion in opposition to Crater dates again to Sept. 25, 2018, when now-former Pass judgement on Rya Zobel of the Massachusetts District Court docket ruled against a motion to dismiss a case introduced by means of the U.S. Commodity Futures Buying and selling Fee (CFTC).

The Division of Justice officially filed criminal charges against Crater on Feb. 19, 2019.

After Crater’s 100-month tenure in the back of bars, he’s going to be matter to a supervised liberate for the next 3 years.