The founder of CluCoin, a cryptocurrency token project based in Miami, has been sentenced to 27 months in federal prison for defrauding investors and using their funds for online gambling.
Austin Michael Taylor, 41, of Sykesville, Maryland, pleaded guilty to wire fraud in August 2024. He was sentenced this week by U.S. District Judge Jacqueline Becerra. In addition to his prison term, Taylor will serve three years of supervised release and has been ordered to pay $1.14 million in restitution and forfeit assets of the same amount.
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Taylor, who had a substantial social media following, launched CluCoin’s initial coin offering (ICO) in 2021, promising a charitable focus. However, after raising funds from investors, he shifted the project’s focus and began diverting funds to his personal account.
Between May and December 2022, Taylor transferred approximately $1.14 million in investor funds to a virtual currency exchange and proceeded to gamble the money away at online casinos.
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The FBI Miami and Washington Field Offices investigated the case. Assistant U.S. Attorney Manolo Reboso prosecuted the case, and Assistant U.S. Attorney Emily Stone is handling asset forfeiture.
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