In line with a recent official ‘press-release’ published, the U.S. DoJ [Department of Justice] has charged a New York-based operator of an acknowledged cryptocurrency payment services firm with a wire fraud and unlawful financial transactions.
In line with the press-release, New York Randall Crater founded & managed ‘My Big Coin Pay Inc. [My Big Coin], an acknowledged ‘cryptocurrency‘ and virtual payment services company situated in Las Vegas, Nevada. Earlier from 2014 to 2017, Crater and his associates allegedly developed an ‘illicit‘ crypto-currency named “My Big Coins” and thereby further marketed it to the investors.
The accused Fraud[ly] lured investors by claiming that the coin was a completely functioning digital currency pegged to valuable physical assets like gold, that could be exchanged for merchandise, cash, or another cryptocurrencies. The Justice Department claims that, in reality, this wasn’t the case.
The indictment added that Crater conducted four counts of wire fraud and 3 counts of illegal financial transactions, similar to as illegal over $6 Mln in capitalist funds for private use. However, the Justice Department additionally stated that “the charges within the indictment are just allegations, and also the defendant is presumed innocent till found guilty on the far side a reasonable doubt in a court of law.”
Earlier in Feb., a lawsuit within the U.S. district court in New York ‘claimed‘ that an capitalist had been misled into investing around $2 Mln dollars in the cryptocurrency MCash. “Not solely was the MCash Token not properly registered with the U.S. SEC [Securities and Exchange Commission], but additionally, in reference to selling of the MCash Tokens. Defendants made several misrepresentations and omissions that induced complainant to invest $2 Mln,” the filing stated.
Evan later in Dec, the Wall Street Journal ‘discovered‘ that over hundred of cryptocurrency offerings showed signs of fraud activity, inconceivable returns and plagiarism. White papers of more than 2,000 of the total 3,291 investigated projects supposedly consisted sentences with luring terms like “nothing to lose, secure profit, return on investment, highest returns, funds profit and no risk.”