TheMerkle_Bitcoin Ponzi Scheme Bustafunds In the cryptocurrency world, there has never been a shortage of dodgy projects, Ponzi Schemes, and outright scams. Most of those projects are all in the past, yet new ones tend to pop up every now and then. The founder of My Big Coin, one of the many fraudulent offerings, has been arrested and faces multiple counts of fraud and unlawful money transfers. My Big Coin Goes Tits up
Not too many people will be familiar with the My Big Coin cryptocurrency. Not just because it wasn’t marketed all that well, but mainly because the project secured millions in funding from under three dozen investors. In fact, it appears 28 investors put a combined $6m into this cryptocurrency project, even though there were plenty of warning signs not to do so whatsoever.
The appeal of My Big Coin was not hard to see. Its founder, known as Randall Crater, claimed this cryptocurrency would be backed by $300m in gold reserves. With such reserves in place, one wouldn’t necessarily need investors to contribute additional funds, although some people saw merit in this concept regardless. Based on a recently submitted court document, it quickly became evident there were never any gold coins nor gold assets to speak of.
While it is true Crater used the investors’ money to effectively buy physical gold coins, he never used those for the My Big Coin project. Instead, he purchased these coins, along with jewelry and artwork, to enrich himself. It is […]
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