CluCoin founder seeks probation in $1.1M fraud case

Austin Michael Taylor, founder of the cryptocurrency project CluCoin (CRYPTO:CLU), is seeking probation after pleading guilty to wire fraud involving $1.14 million in investor funds.  

Taylor asked a Miami federal court to sentence him to probation in a February 11 sentencing memo.  

Prosecutors have requested a prison sentence of approximately two and a half years.  

"Mr. Taylor understands that he had a lapse in judgment and has accepted responsibility for his actions," Taylor's lawyer stated.  

The defense also noted Taylor completed a mental health treatment program and attends Gamblers Anonymous meetings.  

Taylor pled guilty in August to transferring $1.14 million in CluCoin investor funds to his personal account.  

According to the U.S. Department of Justice, Taylor promoted CluCoin's initial coin offering (ICO) at a fundraising event.  

He attracted investors with a white paper promoting the ICO's charitable focus.  

After launching the ICO successfully in May 2021, Taylor shifted CluCoin's focus to NFTs, a computer game, and a metaverse platform.  

Taylor organised and funded “NFTCon: Into the Metaverse” in Miami in April 2022 to boost interest in these projects.  

Between May and December 2022, Taylor transferred approximately $1.14 million in investor funds to his personal account and lost the money gambling at online casinos.  

Taylor said he has "maintained gainful employment" and could initially pay $25,000 toward restitution, with potential for larger payments if granted probation.  

Prosecutors argue that some prison time is necessary to "discourage persons from exploiting cryptocurrency to perpetrate fraud."  

The government contends the court should send a "strong message" that "exploiting the unique characteristics of cryptocurrency to cheat members of the investing public will result in a significant prison sentence."  

Taylor's sentencing hearing is scheduled for February 14.