The founder of a purported cryptocurrency was convicted by a federal jury in New York on Thursday for defrauding investors who thought the virtual money was backed by commodities, the Department of Justice (DOJ) said.
According to court documents and evidence presented at trial, 51-year-old Randall Crater from East Hampton offered virtual payment services through a fraudulent digital currency he called “My Big Coins,” the DOJ said.
Cryptocurrencies are digital money that takes the form of tokens, often referred to as “coins,” which are almost entirely intangible.
The digital currencies and their transactions are created and processed across decentralized systems. The digital currency system has been designed to be free from government control and makes tracking transactions almost impossible….