Fraud Conviction of ‘My Big Coin’ Founder Randall Crater Upheld on Appeal

Web 3 Journalist

Tim Hakki

Web 3 Journalist

Tim Hakki

About Author

A journalist and copywriter with a decade's experience across music, video games, finance and tech.

Author Profile

Share

Copied

Last updated:

February 27, 2024 12:11 EST

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

A US appeals court has upheld the prior sentencing of “My Big Coin” fraud founder Russell Crater.

Crater will serve over 8 years and pay $7.6 million for orchestrating a fraud from 2013 to 2017, facing charges including wire fraud, unlawful transactions, and running an unlicensed money business.

He contended his Sixth Amendment rights were breached when the court didn’t compel testimony from USPS, CFTC, and FBI staff.

Crater sought to challenge the conduct of USPS and FBI agents, claiming their reports biased witnesses’ memories.

Additionally, he disputed the credibility of blockchain expert Pamela Clegg from CipherTrace, arguing she lacked qualifications.

The appellate court found Crater’s appeals insufficient to alter his sentence.

Another High-Profile Crypto Coin Fraud

Across the Atlantic another fraudster from Bitcoin’s early days is under the spotlight. Or at least she would be, if police could find her.

A Chinese woman known under the name “Yadi Zhang” is wanted both in China and Britain for her role in laundering money stolen from investment fraud schemes perpetrated between 2014 and 2017.

Chinese authorities allege Zhang stole $6.3 billion at the time.

Like Crater, Zhang was able to commit multiple counts of fraud in open sight because there was very little scrutiny of what was going on in crypto before Bitcoin’s 2021 bull run.

When she got to London, Zhang employed an assistant, Wen, to help her launder the money. Wen alleges that she was under the impression Zhang had given her that the latter ran a prestigious jewellery and antiques business.

Wen is currently on trial in the UK on money laundering charges.

In 2017 and 2018, the pair converted the Bitcoin loot into fiat, jewellery and property.

When Wen tried to buy a $12.5 million home with gym and cinema in Zhang’s name through law firm Mishcon de Reya, the purchase failed because the law firm could not verify the source of the bitcoin. In October 2018, the Met police froze Zhang’s Mishcon account.

That same year, the M raided the duo’s Hampstead mansion and seized over 61,000 Bitcoin, valued $1.7 billion at the time ($2.5 billion today), from a safe deposit box containing four hardware wallets.

The police successfully recovered the cryptocurrency from the devices in 2021 and announced it last month.