The Federal Bureau of Investigation has informed CluCoin cryptocurrency scam victims that it will contact them through non-fungible tokens.
The United States Attorney’s Office in Florida explained what happened to the CluCoin crypto project.
It was revealed that On August 15th, Austin Michael Taylor, the founder of CluCoin, scammed investors for about 1.14 million dollars. He used the stolen funds in gambling.
Taylor Shifted The Project’s Focus To A Metaverse Platform And A Video Game
Taylor began raising money for CluCoin in May 2021, following the success of the CLU token’s Initial Coin Offering. He used the name DNP3 to stream on Twitch and gained 242,000 followers.
The project’s founder used his social media accounts and announced to investors that CluCoin would offer steady funds for charity projects selected by the community.
He later changed the goal of the project to focus on creating a metaverse platform and a video game.
In July, prosecutors alleged that the project’s founder never told the investors what his intentions were. He also did not reveal to them that he had gambled away their money until around January 3, 2023.
At that time Taylor apologized publicly and admitted that he had wrongly used investor funds for gambling.
Vlad, a CLU investor who refused to reveal his last name, stated that CluCoin’s community was lively and involved.
He stated that he had faith in Taylor when the project began well and kept track of CluCoin before Taylor unexpectedly fell out of sight.
The FBI Aims To Investigate The CluCoin Scam And Use NFTs To Update Victims
Taylor admitted to transferring about $1.14 million of investor funds to his account through a crypto exchange between May and December 2022. He lost the money gambling at online casinos.
As Taylor waits for his October 31 sentencing, facing up to 20 years in prison, the FBI is investigating the case in Miami and Washington. The FBI plans to use NFTs to involve CluCoin scam victims and explain the situation.
The FBI said they will use NFTs to contact “identified victims” about their expected return. This marks one of the first times law enforcement has used NFTs to reach out to victims.
Reports said over 400 victims recently sought compensation from the High Court of London. As a result, the court issued an order to freeze the assets of suspected fraudsters linked to OneCoin.
The accusations target OneCoin co-founder Karl Sebastian Greenwood and “Crypto Queen” Ruja Ignatova. Both OneCoin Limited and One Network Services Limited are also involved.
The assets of Monirul Islam, Monyul Islam, Muhammed Zafar, Karri Wahlroos, and others involved in the case have been frozen.
In January 2023, the FBI added Crypto Queen Ruja Ignatova to the list of the 10 most wanted fugitives, noting her five-year escape.
