Randall Crater, Baker of Billion Dollar Scheme “My Big Coin” Sentenced to 8 Years in Prison

• Mr. Crate took advantage of the growing crypto market to perpetuate his brazen fraud scheme netting over $7.5 million.
• Randall Crater has now been found guilty of committing wired fraud and unlawful monetary transactions.

The U.S. Department of Justice (DOJ) issued a press release on 31 January, stating that “My Big Coin” founder Randall Crater was sentenced to 100 months in prison by U.S. District Court Judge Denise Casper in Massachusetts. Notably, the federal court in Boston ruled that the 52-year-old Crater will also have to serve three years of supervised release.

He used the growth of the crypto industry to create the illusion of My Big Coin as a legitimate service from which investors would yield a profit.

The sentence comes months after he was convicted on four counts of wire fraud, three counts of unlawful monetary transactions, and one count of operating an unlicensed money-transmitting business by a federal jury in July 2022.

Randall Crater, the founder of My Big Coin Pay Inc., a purported cryptocurrency & virtual payment services company, was convicted today of defrauding investors of over $6 million in a cryptocurrency fraud scheme uncovered by #FBI Boston & @USPIS_BOS. https://t.co/V9nApheUPh pic.twitter.com/7HQZyW6ynf

— FBI Boston (@FBIBoston) July 21, 2022

He and his associates claimed the coins were a functioning cryptocurrency backed by $300 million in gold, oil, and other assets. He also promoted My Big Coin Exchange, in which investors could exchange coins for US dollars and other fiat currencies.

Crater and his marketing team spent a large chunk of the $7.6 million on a house, several cars, and over $1 million on antiques, artwork, and jewelry.

Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division, said:

“Spreading outright lies, Randall Crater defrauded dozens of victims out of more than $7.5 million, convincing them their cryptocurrency investments were backed by gold when in reality their hard-earned money went to funding his lavish lifestyle.”

Legal action against Randall Crater dates back to  25 September 2018, when former Judge Rya Zobel of the Massachusetts District Court denied a motion to dismiss a case brought by the United States Commodity Futures Trading Commission (CFTC). On 19 February 2019, the Department of Justice officially filed criminal charges against the schemer.