Miami cryptocurrency founder pleads guilty to fraud scheme

FLORIDA — The founder of a Miami-based cryptocurrency project, CluCoin, has pleaded guilty to wire fraud in a scheme involving the misuse of over $1 million of investor funds, according to the U.S. Attorney’s Office for the Southern District of Florida (USAO).

Austin Michael Taylor, 40, who founded CluCoin and owned CLU LLC, reportedly admitted to transferring $1,140,000 of investor funds to his personal account. The USAO said Mr Taylor, who used his significant social media presence to generate interest in CluCoin, now faces up to 20 years in federal prison.

His sentencing is scheduled for October 31, 2024, before U.S. District Judge Jacqueline Becerra.

Court records reveal that Taylor promoted the digital token “CLU” through an initial coin offering (ICO). Investors exchange established cryptocurrencies or fiat money for a new digital token in this fundraising method. Mr Taylor’s “white paper” for CluCoin promised a charitable focus, attracting investors to the ICO launched on May 19, 2021.

According to the USAO, following the ICO, Taylor shifted focus to new ventures, including non-fungible tokens (NFTs), a computer game, and a metaverse platform.

To further drive interest, Mr Taylor is said to have organized and financed “NFTCon: Into the Metaverse,” held in Miami on April 4-5, 2022. Shortly after this event, Taylor reportedly gained control over a cryptocurrency address where some investor funds were held.

From May to December 2022, he allegedly diverted approximately $1.14 million from this address to his account at a virtual currency exchange. Subsequently, he is said to have lost these funds gambling at multiple online casinos.

The FBI’s Miami and Washington Field Offices investigated the case. Assistant U.S. Attorney Manolo Reboso is prosecuting it, and Assistant U.S. Attorney Emily Stone is handling asset forfeiture.

The FBI will notify victims identified through NFTs. Individuals who invested in CLU, believe they are victims or received an NFT are encouraged to visit https://www.fbi.gov/CluCoinInvestors for more information.