Crypto Founder in South Florida Admits to $1.14M Fraudulent Scheme
Austin Michael Taylor, the founder of the cryptocurrency project CluCoin and owner of CLU LLC, an Aventura-based company, has pleaded guilty to wire fraud in Miami federal court, according to authorities.
Authorities have uncovered a scheme in which Taylor, 40, allegedly transferred a significant amount of CluCoin investor funds to his personal account, resulting in charges being filed against him.
According to court records, Taylor leveraged his substantial social media following to create buzz around a digital token he called “CLU.”
A news release from the U.S. Department of Justice states that Taylor endorsed CLU’s initial coin offering (ICO) at a fundraising event, where investors could trade established cryptocurrencies or fiat currency for a new digital token.
During the incident, authorities reported that Taylor presented a document to entice investors, highlighting the ICO’s philanthropic mission.
The CluCoin ICO had a successful launch on May 19, 2021. Investigators have reported that Taylor shifted CluCoin’s focus towards new endeavors such as non-fungible tokens (NFTs), a computer game, and a metaverse platform.
In order to generate more excitement for these projects, Taylor took the initiative to organize and finance “NFTCon: Into the Metaverse,” which took place in Miami on April 4 and 5, 2022.
In May 2022, detectives revealed that shortly after the event, Taylor acquired the capability to withdraw funds from a cryptocurrency address associated with investor funds.
From May to December 2022, it was reported that he moved around $1.14 million of investor funds to his personal account at a virtual currency exchange and unfortunately lost the money while gambling at online casinos.
Taylor’s sentencing is set for Oct. 31 at 10 a.m. with U.S. District Judge Jacqueline Becerra presiding, according to court records.
The DOJ has announced that Taylor could potentially face a maximum of 20 years in prison due to the wire fraud conviction. The final sentence will be determined by Becerra, taking into account the U.S. Sentencing Guidelines and other legal factors.
