The founder of CluCoin, Austin Michael Taylor, was sentenced to more than two years in federal prison for wire fraud, following a scheme that involved transferring over $1.14 million in CluCoin investor funds. In addition to his prison sentence, Taylor was ordered to pay restitution and forfeit the amount he misappropriated.
The 41-year-old Sykesville resident, who created CluCoin and managed its operations through CLU LLC, used his extensive social media influence to promote an initial coin offering (ICO) for CluCoin. The ICO promised charitable purposes, but after raising funds, Taylor shifted the focus of the project to ventures including non-fungible tokens (NFTs), a metaverse platform, and even a video game.
In 2022, Taylor hosted an investor conference, “NFTCon: Into the Metaverse,” to further attract investors. Shortly after the event, Taylor gained control of a cryptocurrency address linked to CluCoin investor funds. Between May and December 2022, he transferred the funds into his personal account at a virtual currency exchange. He ultimately used the $1.14 million for online gambling, losing the entire amount.
The sentence serves as a stark reminder of the risks involved in cryptocurrency investments and the importance of accountability in the fast-evolving digital currency world.
