“The defendant preyed on victims with what appeared to be an unstoppable rise in cryptocurrency values, when in reality investors were only funding his lavish lifestyle,”

Crater founded My Big Coin in 2013, offering virtual payment services through a fraudulent digital currency, “My Big Coins,” which he marketed to investors between 2014 and 2017 using misrepresentations about the nature and value of Coins. Crater and his associates falsely claimed that Coins were a fully functioning cryptocurrency backed by $300 million in gold, oil and other valuable assets. Crater also falsely told investors that My Big Coin has a partnership with MasterCard and that Coins could readily be exchanged for government-backed paper currency or other virtual currencies.

Over the course of the scheme, Crater misappropriated over $6 million of investor funds for his own personal gain and spending on goods, including hundreds of thousands of dollars’ worth of expenses on antiques, artwork and jewelry.