FBI announces that they will be using non-fungible tokens (NFTs), to help victims recover stolen funds from a cryptocurrency scam linked to CluCoin – a project started in 2021.
On August 21, 2018, the U.S. Attorney’s Office of Southern District of Florida stated CluCoin creator Austin Michael Taylor plead guilty to wire Fraud.
Taylor misappropriated $1.14million of CluCoin investor funds raised during the initial coin offering in May 2021. The ICO money was originally meant for CluCoin projects.
Taylor then focused his efforts on new endeavors. He created NFTs as well as a computer platform and game. Taylor spent the money he earned from these initiatives to play online.
Taylor issued a public apology in 2023 for his actions. Taylor acknowledged that he had a gambling problem and expressed remorse over misusing investors’ funds. In addition, he agreed to reimburse victims of fraud $1.14million in restitution.
In order to notify the victims of NFTs, as part the restitution processes, the FBI has identified them. They also encouraged those who have invested in CluCoin and believe they were victims, as well as anyone who received NFTs from the FBI, to send additional information. dedicated webpage.
Taylor’s sentencing is set for October 31, 2024. For his wire fraud conviction, Taylor could face a prison sentence up to twenty years.
The case in question is just one recent example of a fraud scheme that has been perpetrated within the crypto space. Earlier in May, authorities arrested Aiden PleterskiAlso known as “Crypto King,” After months of investigations and complaints by investors. Sam Bankman Fried, founder of now defunct cryptocurrency exchange FTX was also arrested in another high-profile incident. sentenced to 25 years in prison In March, he was sentenced to prison for his part in the collapse of the exchange.
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Source: blog.cryptoflies.com