CluCoin Founder Appeals for Probation Instead of Jail Time

CluCoin founder Austin Michael Taylor, who pleaded guilty to wire fraud for misappropriating $1.1 million in investor funds to fuel his online gambling addiction, is seeking probation instead of prison time.

In a 11 February sentencing memo to a Miami federal court, Taylor requested a non-custodial sentence, citing his completion of an in-hospital mental health programme and ongoing treatment through Gamblers Anonymous.

His lawyer wrote:

“Mr. Taylor understands that he had a lapse in judgment and has accepted responsibility for his actions.”

Meanwhile, federal prosecutors have recommended a prison term of approximately two and a half years, raising questions about whether Taylor’s plea for leniency will be granted.

Taylor Brought Up Military-Related Service Rendered

Taylor pleaded guilty in August to wire fraud related to his crypto scheme, which launched the CLU token in May 2021.

Prosecutors detailed how Taylor later minted NFTs and promised a metaverse platform and computer game.

However, by May 2022, Taylor withdrew over $1.14 million in investor funds from wallets and lost it through online gambling by December that year.

In a sentencing memo, Taylor cited his 15 years of military service, maintained employment, and pledged an initial $25,000 restitution payment, promising further contributions if granted probation.

Prosecutors, however, recommended a 27-month prison sentence followed by three years of supervised release, emphasizing the need to deter crypto-related fraud.

Prosecutors said:

“Fraudulent cryptocurrency investments are rampant and growing throughout the United States. Through the sentence it imposes, this Court can and should send a clear message that the fraudulent exploitation of investors will not be tolerated.”

Taylor’s sentencing, set for 14 February, is poised to test how courts balance personal circumstances against the necessity of sending a strong message against financial misconduct in the digital asset space.