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Clucoin Founder Admits to Diverting Investor Funds, Confesses to Wire Fraud

Clucoin Founder Admits to Diverting Investor Funds, Confesses to Wire Fraud

The founder Clucoin, a cryptocurrency project, has admitted to using $1.14 million in investors’ money for personal expenses, including gambling, and also pleaded guilty to wire fraud. Even though he showcased the cryptocurrency for philanthropic purposes, Taylor exploited his social media following to draw investments that he later embezzled. This revelation might see him facing up to 20 years behind bars.

Austin Michael Taylor Confesses to Crypto Fraud

Austin Michael Taylor, the creator of the cryptocurrency Clucoin, entered a guilty plea to wire fraud on Wednesday, according to a statement released by the U.S. Attorney’s Office for the Southern District of Florida. The 40-year-old admitted to transferring $1.14 million of investor’s funds from Clucoin into his account.

According to court records, Taylor took advantage of his large social media following to create a buzz around the token, generating community interest in the CLU token.

aylor generated interest in CLU’s initial coin offering (ICO), which is a capital raising event in which an entity offers investors a unique digital token in exchange for a more established cryptocurrency or fiat currency.

Even though Taylor had promised to spend the money for philanthropic purposes, he instead used it for gambling and other personal expenses. The lawyer said that Taylor spent $1.14 million of investors’ funds playing online casino games between May and December 2022 and lost all of it.

To draw more funding, Taylor hosted an event in April 2022 named “NFTCon: Into the Metaverse.” He will be sentenced on October 31. The crypto culprit faces a maximum of 20 years in jail for wire fraud.

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