Austin Michael Taylor, the founder of CluCoin and a prominent figure in the cryptocurrency and NFT space, has been sentenced to 27 months in prison after pleading guilty to wire fraud.
Taylor, 41, admitted to misusing $1.14 million in investor funds, primarily to fuel a gambling addiction. In addition to his prison sentence, he has been ordered to pay restitution and forfeit assets equivalent to the amount he misappropriated.
Fraudulent ICO and Misuse of Investor Funds
Taylor, also known by his online alias DPN3, launched CluCoin in 2021 with the promise of a community-driven cryptocurrency with charitable goals. He leveraged his large social media following to generate interest in the project, attracting investors through an initial coin offering (ICO). According to court documents, he created a “white paper” that outlined CluCoin’s mission and vision, aiming to persuade investors to participate in the fundraising round.
However, after successfully raising funds, Taylor began diverting investor money for personal use. The U.S. Attorney’s Office for the Southern District of Florida stated that between May and December 2022, he transferred approximately $1.14 million from CluCoin investor funds into his personal cryptocurrency accounts. These funds were then gambled away at various online casinos.
Despite launching additional projects, including the Goobers NFT collection, a play-to-earn game called Gridlock, and a metaverse platform named Xenia, Taylor failed to deliver on his promises to investors. His fraudulent activities continued until early 2023, when he admitted to CluCoin investors that he had lost their money through online gambling.
Sentencing and Legal Proceedings
Taylor’s sentencing follows his guilty plea to one count of wire fraud in August 2024. Originally facing up to 20 years in prison, Taylor sought leniency, citing his military veteran status. U.S. District Judge Jacqueline Becerra sentenced him to 27 months in prison, followed by three years of supervised release.
The case was investigated by the FBI’s Miami and Washington Field Offices, with Assistant U.S. Attorney Manolo Reboso leading the prosecution. Assistant U.S. Attorney Emily Stone is overseeing the asset forfeiture process.
Victims of the fraud were alerted via NFT and directed to provide relevant information to the FBI. The CluCoin project, once valued at $17 million, now has a market capitalization of just $54,133. Similarly, the Goobers NFT collection, which peaked at 55.25 ETH, has seen its value plummet.
