US Judges Uphold Sentence of Crypto Scammer Russell Crater
A US appeals court has upheld the prior sentencing of “My Big Coin” 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 didn’t compel testimony from USPS, CFTC, and FBI staff.
Crater sought to challenge the conduct of USPS and FBI agents, claiming their reports biased witnesses’ memories. Additionally, he disputed the credibility of blockchain expert Pamela Clegg from CipherTrace, arguing she lacked qualifications. The appellate court found Crater’s appeals insufficient to alter his sentence.
Another High-Profile Crypto Coin Fraud
Across the Atlantic another fraudster from Bitcoin’s early days is under the spotlight. A Chinese woman known under the name “Yadi Zhang” 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 Bitcoin’s 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 Zhang’s 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 Zhang’s Mishcon account.
That same year, the M raided the duo’s 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.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
