The founder of Miami’s cryptocurrency token business was sentenced to 27 months in prison for committing wire fraud during the last crypto boom and was ordered to pay the victim $1.14 million.
Austin Michael Taylor, 41, founded Clucoin, the cryptocurrency project that successfully made his first coin offering in May 2021. New digital token.
However, Clucoin crashed and lost its value. The company then pivoted to other business ventures, but failed. Finally, Taylor developed a gambling addiction and lost investor money at an online casino.
The ruling, handed over by US District Judge Jacqueline Becerra in Miami on February 14th, is inherent to one wire fraud and demanded from the US Attorney General’s office for the Southern District of Florida. It was consistent with the punishment that was done. This comes after he pleaded guilty in August 2024 in Miami federal court. After prison time, Taylor has to spend three years of supervised releases.
Over prison
Judge Becerra imposes additional conditions. Taylor said he was not initially granted approval from a US probation officer, but more than that, “we will be limited to loans, credits, or credit cards, either as a loan, credit or credit card fees.” You cannot apply, solicit or bear debt. He must also participate in and pay for gambling addiction treatment programs.
The victims of Crewcoin shenanigans have not been named in publicly available court documents. However, the US law firm wrote in a ruling request that it had “hundreds of investors.” It said he had already contacted them. Still, those who invested in Clucoin should contact the FBI and visit FBI.gov/ClucoinInvestors if they consider themselves a victim or have received an NFT.
Early Clucoin
In the early days of the pandemic, Taylor, a Maryland computer programmer, developed a big internet by offering money and prizes. From May 2021, he “utilized this support to begin recruiting investments in his new cryptocurrency,” the court filed in August 2024, which explained his guilty plea.
The cryptocurrency was originally called Clushare, but its name was changed to Clucoin. He had a popular X account and went there on @dnpthree. As of February 16th, the account was still open with over 500,000 followers.
In 2021, Taylor announced that it will hold its first coin offering for crew coins. “During this ICO, anyone could become a Crusin Coin Holder by sending a more established cryptocurrency to the cryptocurrency address associated with the defendant,” the court document stated. It’s there.
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He also published a white paper (mini-research paper in the business world) that serves as his investment prospectus as a guide to what investors should expect from the company. In it, he said that one of the company’s main goals is to provide ongoing revenue for charity projects suitable for supporting Clucoin Coin owners.
He also assured potential investors that “some of the fund will flow to the cryptocurrency address of the developers managed by the defendant, but he will use funds that match the white paper.” .
Clucoin successfully completed its ICO on May 19, 2021, saying, “Investors sent millions of dollars more established cryptocurrency to cryptocurrency addresses associated with the Clucoin project,” which was published “newly issued. It was in exchange for “Clucoin Digital Tokens”.
Clucoin prices rose, and in early June 2021, Taylor established Cluc in Aventura.
South Florida was hot
This happened when Miami not only experienced a tech boom, but also became the epicenter of crypto companies and entrepreneurs. Local officials were also caught up in the law. Miami Heat Bayfront Arena was renamed FTX Arena in 2021 on a $135 million contract in Miami-Dade County. FTX was then a high-flying crypto trading exchange.
Miami Mayor Francis Suarez has also become a major Crypto champion.
bust
Crypto’s winter is getting faster.
In 2022, FTX failed and filed for bankruptcy. Last year, former CEO Sam Bankman-Fried was convicted of seven wire fraud and sentenced to 25 years in prison.
In April 2023, Miamicoin, one of Ventures Suarez, stopped trading after encountering liquidity issues. Neither the city nor Suarez created a Miami coin, but they pushed it.
More than a year ago, Clucoin’s value and trading volume had already “decreased sharply.”
At the time, Taylor told people that he would step away from funding and “instead we’ll focus on multiple potentially profitable online business ventures.”
This includes creating NFTs, or inappropriate tokens, entering Metaverse and launching a computer game called Xenia. The code was still strong in Miami.
In April 2022, he held a meeting at the Miami hotel called “Nftcon: Into the Metaverse.” He thought it was a way to regain trust and a way for people to meet face to face.
Still, none of the participants were told.
“While the defendant managed the CLU and represented potential and existing investors in its activities, he secretly succumbed to gambling addiction,” the legal agreement said.
“The government’s cryptocurrency tracing has shown to last almost instantly and until December 2022. “And from that account to multiple online casinos, the defendant lost his gambling.” From May 2022 Approximately $1.14 million was handed over during December.
In January 2023, he publicly admitted this to investors and followers. He handed over control of his company to his business companions.
US lawyer Manolo Leboso has indicted the case. US lawyer Aide Emily Stone is in charge of forfeiture of assets. Taylor’s judicial agreement in August was signed by the then-U.S. top lawyers for Markenzie Lapointe, who resigned in January before President Donald Trump took office.
