U.S. Department of Justice has charged a New York-based operator of a purported crypto payment services firm with a wire fraud and unlawful monetary transactions

The United States Department of Justice (DoJ) has charged a New York-based operator of a purported cryptocurrency payment services firm with a wire fraud and unlawful monetary transactions. The DoJ announced the allegations in a press release on Feb. 27.

According to the release, New York citizen Randall Crater founded and managed My Big Coin Pay Inc. (My Big Coin), a purported cryptocurrency and virtual payment services company headquartered in Las Vegas, Nevada. From 2014 to 2017, Crater and his associates allegedly developed a fraudulent cryptocurrency “My Big Coins” and marketed it to investors.

The accused allegedly lured investors by claiming that the coin was a fully functioning virtual currency pegged to valuable physical assets like gold, which could be exchanged for goods, cash, or other cryptocurrencies. The DoJ claims that, in reality, this was not the case.

The indictment states that Crater conducted four counts of wire fraud and three counts of unlawful monetary transactions, as well as misappropriated more than $6 million in investor funds for personal use. However, the DoJ further noted that “the charges in the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.”

Also read: Coinomi Wallet denied recent claims that its software sends wallet recovery seed phrases to Google’s remote spell checker servers in plain text

Source: https://cointelegraph.com/news/new-york-based-entrepreneur-charged-with-fraudulent-cryptocurrency-scheme