A US appeals court has upheld the prior sentencing of โMy Big Coinโ 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 didnโt compel testimony from USPS, CFTC, and FBI staff.
Crater sought to challenge the conduct of USPS and FBI agents, claiming their reports biased witnessesโ memories.
Additionally, he disputed the credibility of blockchain expert Pamela Clegg from CipherTrace, arguing she lacked qualifications.
The appellate court found Craterโs appeals insufficient to alter his sentence.
Another High-Profile Crypto Coin Fraud
Across the Atlantic another fraudster from Bitcoinโs early days is under the spotlight. Or at least she would be, if police could find her.
A Chinese woman known under the name โYadi Zhangโ 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 Bitcoinโs 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 Zhangโs 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 Zhangโs Mishcon account.
That same year, the M raided the duoโs 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.
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