CryptoMediaClub
Thursday, July 3, 2025
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis
No Result
View All Result
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis
No Result
View All Result
CryptoMediaClub
No Result
View All Result
Home All news

CluCoin Founder Pleads Guilty to Wire Fraud in $1.1 Million Scam

23.08.2024
A A
0
120
VIEWS
ShareShare

Austin Michael Taylor, the founder of CluCoin, a cryptocurrency project marketed for its charitable focus, has pleaded guilty to wire fraud in connection with a $1.1 million scam.

Taylor, who managed the operations of CluCoin through his company CLU LLC, admitted to misappropriating investor funds and using them to fuel his gambling addiction.

Taylor Gambles Away Investor Funds

Austin Michael Taylor, a 40-year-old from Maryland, leveraged his significant social media following to promote CluCoin, a digital token he created under the guise of a charitable initiative.

CluCoin’s initial coin offering (ICO), launched in May 2021, attracted substantial interest from investors enticed by the promise of contributing to a project with a philanthropic mission.

Taylor authored a “white paper” for CluCoin, a common practice in the crypto space. The paper detailed the project’s goals and mechanisms and successfully raised significant funds during the ICO.

However, instead of channeling these funds into the development of CluCoin or its associated projects, Taylor diverted approximately $1.14 million of investor money to his personal account.

Court documents reveal that between May and December 2022, Taylor used these misappropriated funds to engage in online gambling, primarily at crypto casinos such as Stake.com, where he eventually lost the entire sum.

CluCoin Founder Pleads Guilty to Wire Fraud in $1.1 Million Scam
Source: U.S. Attorney’s Office, Southern District of Florida

Taylor’s fraudulent activities were not immediately apparent to CluCoin investors. In an attempt to maintain interest in the project, Taylor organized and hosted “NFTCon: Into the Metaverse,” an event held in Miami in April 2022.

This conference was intended to generate further investment in CluCoin and related ventures, including minting non-fungible tokens (NFTs), developing a metaverse-based video game, and other digital projects.

Despite these efforts to keep the project afloat, the reality was that Taylor was siphoning off investor funds for personal gain, undermining the trust and financial security of those who had invested in CluCoin.

The unraveling of Taylor’s scheme came in early 2023 when he publicly confessed to using investor funds for gambling.

This admission marked the beginning of CluCoin’s end, as Taylor relinquished control of the project to his business associates, effectively abandoning the promises he made to his investors.

Legal Consequences: Up to 20 Years in Prison

The legal consequences of Austin Michael Taylor’s actions culminated on August 15, 2024, when he pleaded guilty to one count of wire fraud in a Florida federal court.

The charge carries a maximum sentence of 20 years in prison, and Taylor’s sentencing is scheduled for October 31, 2024, before U.S. District Judge Jacqueline Becerra.

In addition to facing prison time, Taylor has agreed to forfeit $1.14 million in ill-gotten gains, which will be used for victim restitution.

This case, prosecuted by the U.S. Attorney’s Office for the Southern District of Florida, with investigative support from the FBI’s Miami and Washington Field Offices, is a stark reminder of the vulnerabilities within the cryptocurrency market.

The court’s handling of Taylor’s sentencing will likely take into account the U.S. Sentencing Guidelines and other statutory factors, including Taylor’s lack of prior offenses and the severity of his crimes.

His legal team may argue for leniency based on his gambling addiction, a common defense in cases involving financial mismanagement.

However, the impact of his actions on CluCoin investors, many of whom believed they were contributing to a charitable cause, will also weigh heavily in the court’s final decision.

The post CluCoin Founder Pleads Guilty to Wire Fraud in $1.1 Million Scam appeared first on Cryptonews.

Share9Tweet6ShareSharePin2

Related Posts

OpenAI Disavows Robinhood’s Tokenized Shares, Elon Musk Chimes In – What’s Going On?
All news

OpenAI Disavows Robinhood’s Tokenized Shares, Elon Musk Chimes In – What’s Going On?

03.07.2025
0

OpenAI has distanced itself from Robinhood’s new “OpenAI token” campaign, saying it did not authorize or participate in the promotion...

Read moreDetails
Binance Pay Lights Up French Riviera: 80+ Merchants Now Take Stablecoins Instantly

Binance Pay Lights Up French Riviera: 80+ Merchants Now Take Stablecoins Instantly

03.07.2025
Bithumb Launches Spinoff as Part of IPO Bid as More Banks Join Stablecoin Union

Bithumb Launches Spinoff as Part of IPO Bid as More Banks Join Stablecoin Union

03.07.2025
Trump Family Rakes In $620M+ From Crypto: Meme coin Windfall, Token Sales, and a 20% Bitcoin Stake

Trump Family Rakes In $620M+ From Crypto: Meme coin Windfall, Token Sales, and a 20% Bitcoin Stake

03.07.2025
What If Bitcoin Hits $200K? AI Projects Dominance Spikes and Altcoin Frenzy

What If Bitcoin Hits $200K? AI Projects Dominance Spikes and Altcoin Frenzy

02.07.2025
Load More
Next Post
Vitalik Buterin says Ethereum’s fundamentals have become ‘crazy strong’

Vitalik Buterin says Ethereum’s fundamentals have become ‘crazy strong’

0 0 votes
Рейтинг статьи
Subscribe
Notify of
guest
guest
0 комментариев
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Recommended

MOVE Token Is Live as Airdrop Mania Sweeps the Market – Find Out If You Qualify

MOVE Token Is Live as Airdrop Mania Sweeps the Market – Find Out If You Qualify

6 months ago
Coinbase Files For Partial Summary Judgement In SEC Case, Regulator Pushes For 3 Year Review Period

Coinbase Files For Partial Summary Judgement In SEC Case, Regulator Pushes For 3 Year Review Period

9 months ago
Coinbase Launches S&P 500 for Crypto: the COIN50 Index

Coinbase Launches S&P 500 for Crypto: the COIN50 Index

8 months ago
Ethena USDe overtakes Solana in revenue, hits $3 billion market cap

Ethena USDe overtakes Solana in revenue, hits $3 billion market cap

1 year ago

Categories

  • All news
  • Altcoins
  • Analysis
  • Bitcoin
  • Blockchain
  • Ethereum
  • NFT
No Result
View All Result

Highlights

Bithumb Launches Spinoff as Part of IPO Bid as More Banks Join Stablecoin Union

StanChart predicts Bitcoin’s new cycle may defy past patterns with ETF and policy tailwinds

Trump Family Rakes In $620M+ From Crypto: Meme coin Windfall, Token Sales, and a 20% Bitcoin Stake

What If Bitcoin Hits $200K? AI Projects Dominance Spikes and Altcoin Frenzy

Ethereum ETFs forecast to attract $10 billion by late 2025, says Bitwise CIO

XRP Price Prediction – 95% ETF Approval Odds + XRPL EVM Launch: Could XRP Hit $1,000?

Trending

OpenAI Disavows Robinhood’s Tokenized Shares, Elon Musk Chimes In – What’s Going On?
All news

OpenAI Disavows Robinhood’s Tokenized Shares, Elon Musk Chimes In – What’s Going On?

03.07.2025
0

OpenAI has distanced itself from Robinhood’s new “OpenAI token” campaign, saying it did not authorize or participate...

Solana dominates real value rankings, DEX volume during H1

Solana dominates real value rankings, DEX volume during H1

03.07.2025
Binance Pay Lights Up French Riviera: 80+ Merchants Now Take Stablecoins Instantly

Binance Pay Lights Up French Riviera: 80+ Merchants Now Take Stablecoins Instantly

03.07.2025
Bithumb Launches Spinoff as Part of IPO Bid as More Banks Join Stablecoin Union

Bithumb Launches Spinoff as Part of IPO Bid as More Banks Join Stablecoin Union

03.07.2025
StanChart predicts Bitcoin’s new cycle may defy past patterns with ETF and policy tailwinds

StanChart predicts Bitcoin’s new cycle may defy past patterns with ETF and policy tailwinds

03.07.2025
  • All news
  • Altcoins
  • Bitcoin
  • Blockchain
  • Ethereum
  • NFT
  • Analysis
Editor: cryptomediaclub.com@gmail.com
Advertising: digestmediaholding@gmail.com

Disclaimer: Information found on CryptoMediaClub is those of writers quoted. It does not represent the opinions of CryptoMediaClub on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoMediaClub covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.

© 2023 Crypto News. All Rights Reserved

No Result
View All Result
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis

Disclaimer: Information found on CryptoMediaClub is those of writers quoted. It does not represent the opinions of CryptoMediaClub on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoMediaClub covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.

© 2023 Crypto News. All Rights Reserved

wpDiscuz