In a recent ruling by the United States Court of Appeals for the First Circuit, the fraud conviction of Randall Crater, the founder of cryptocurrency project My Big Coin, has been upheld. Crater was sentenced to over eight years in prison following a jury’s verdict of guilt on multiple counts including wire fraud, unlawful monetary transactions, and operating an unlicensed money-transmitting business. The appellate panel, consisting of Judges Gustavo Gelpí, Jeffrey Howard, and Julie Rikelman, dismissed Crater’s appeal for a new trial, rejecting arguments made by his legal team regarding Sixth Amendment rights violations and the credibility of expert testimony from Pamela Clegg of CipherTrace.
The court’s decision reaffirmed findings that My Big Coin was falsely marketed as a cryptocurrency payment service, resulting in substantial financial losses for victims. Despite claims of token backing by gold and partnerships with major financial entities, evidence revealed substantial discrepancies, leading to Crater’s conviction in January 2023 and subsequent sentencing to 100 months in prison, along with restitution payments exceeding $7.6 million to defrauded individuals.
This ruling underscores ongoing efforts by U.S. authorities to prosecute fraudulent activities in the cryptocurrency space, as demonstrated by recent criminal proceedings against prominent figures such as former Binance CEO Changpeng Zhao, former Celsius CEO Alex Mashinsky, and former FTX CEO Sam Bankman-Fried.
