Cryptocurrency Project Founder Convicted of Fraud and Money Laundering, Faces Up to 30 Years in Prison
A cryptocurrency industry executive has been convicted of multiple fraud and money laundering charges after defrauding investors of millions of dollars through false claims about a new cryptocurrency project.
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Founder Convicted in Multimillion-Dollar Fraud
A federal jury in New York has convicted David Kramer, founder and CEO of the cryptocurrency project BioCoin, of wire fraud and money laundering. The verdict follows a four-week trial presided over by U.S. District Judge Judith Kline, in which prosecutors proved that Kramer misled investors about BioCoin's progress and potential business opportunities.
According to court documents, Kramer, 43, of Florida, misappropriated more than $3 million from the BioCoin sale for personal use, including the purchase of luxury real estate and several expensive cars. Kramer also engaged in money laundering, moving investment funds through multiple bank accounts before using them to fund his personal purchases.
FBI: Kramer exploited investor trust for personal gain
Speaking after the verdict, FBI Northeast Regional Director Frank Morrison emphasized the seriousness of the case:
David Kramer abused the trust of investors, manipulating and exploiting the promise of cutting-edge technology for his own personal gain. These actions not only caused financial loss but also undermined confidence in emerging technologies in the digital asset space.
The jury found that Kramer made false statements about the development of BioCoin, including claiming that the coin was about to be adopted by a major financial institution, when in fact there was no contract or agreement. These statements allowed Kramer to raise millions of dollars from unsuspecting investors.
IRS: This is a massive fraud
Jessica Thompson, Special Agent in Charge of the IRS Criminal Investigation Division in New York, said the case was a classic example of financial fraud:
Kramer used false promises to lure investors into a cryptocurrency that had no real value. This fraudulent and deceptive conduct not only caused serious financial harm but also damaged the reputation of the entire cryptocurrency industry.
Thompson went on to point out that, *"BioCoin was promoted by Kramer as a revolutionary financial solution, but in reality was just a means for him to profit from innocent people.
Court: Verdict Should Be a Wake-Up Call for Investors
Manhattan District Attorney Alexander Reynolds also commented on the case:
Fraudsters like Kramer often use new technologies to deceive uninformed investors. Raising capital through lies and misrepresentations is neither creative nor legal. Today, justice has been served.
Kramer is scheduled to be sentenced on September 15, 2025, facing a maximum sentence of 20 years in prison for wire fraud and 10 years for money laundering. In addition, his personal assets, including real estate and cars purchased with investors' money, will be seized by court order.
About BioCoin
BioCoin is a cryptocurrency project that was advertised as a groundbreaking financial solution, aiming to change the way digital transactions operate through blockchain technology. However, after being exposed for the fraudulent activities of its founder, BioCoin lost all credibility and was suspended by the authorities. Investors in BioCoin are now looking to recover their lost funds and continue to face many legal challenges.