The founder of CluCoin, a cryptocurrency token project based in Miami, has been sentenced to 27 months in prison. The sentencing includes three years of supervised release and an order to pay restitution and forfeit assets totaling $1.14 million. This follows the defendant's guilty plea to wire fraud charges in August 2024.
Austin Michael Taylor, aged 41 from Sykesville, Maryland, founded CluCoin and owned CLU LLC, which was responsible for the operations of CluCoin in Miami-Dade County, Florida.
Taylor utilized his substantial social media presence to attract interest in a digital token named "CLU." He generated interest through an initial coin offering (ICO), a capital-raising event where investors receive unique digital tokens in exchange for established cryptocurrencies or fiat currency. A white paper was created by Taylor to educate and encourage investment with a promise of charitable focus. Following the successful launch of CluCoin’s ICO on May 19, 2021, Taylor shifted focus towards other projects like non-fungible tokens (NFTs), a computer game, and a metaverse platform.
An event called “NFTCon: Into the Metaverse” was organized by Taylor at a Miami hotel on April 4 and 5, 2022. This aimed to increase interest and investment in CLU, CluCoin, and associated projects. After this conference in May 2022, Taylor began withdrawing funds from a cryptocurrency address he controlled where part of the CLU investor funds were automatically transferred. Between May and December 2022, approximately $1.14 million was moved into his personal account at a virtual currency exchange and subsequently lost through gambling at online casinos.
The sentence was announced by U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida along with Acting Special Agent in Charge Justin E. Fleck of the FBI's Miami Field Office. U.S. District Judge Jacqueline Becerra imposed the sentence.
The investigation involved FBI offices in Miami and Washington Field Offices with Assistant U.S Attorney Manolo Reboso prosecuting the case while Assistant U.S. Attorney Emily Stone manages asset forfeiture.
Victims identified via NFT have been notified accordingly. Those who invested in CLU or received an NFT are encouraged to visit https://www.fbi.gov/CluCoinInvestors for providing relevant information to the FBI.
Court documents related to this case can be accessed on the Southern District of Florida's website under case number 24-cr-20308.