My Big Coin Ordered to Pay $26M in Fines

My Big Coin Faces $26 Million in Fines

A Massachusetts federal court has ordered the operators of My Big Coin to pay $25.8 million in fines to the Commodity Futures Trading Commission (CFTC).

The default judgment against My Big Coin Pay, Inc., My Big Coin, Inc., and executives Mark Gillespie and John Roche includes $19.32 million in civil monetary penalties and $6.44 million in restitution to defrauded investors.

Gillespie, Roche, and the companies are also banned from participating in CFTC-regulated markets.

$6 Million in Investor Fraud

The CFTC alleges that Gillespie, Roche, and Randall Crater defrauded 28 investors of over $6 million between January 2014 and June 2017. The scheme involved false claims about My Big Coin's (MBC) value, usage, and backing by gold.

The case against Michael Kruger was dismissed due to his death.

Crater's Sentence and Restitution

Randall Crater, another operator, was previously sentenced to over eight years in prison for wire fraud, unlawful monetary transactions, and operating an unlicensed money-transmitting business. He was also ordered to pay $7.6 million in restitution to defrauded investors, a decision upheld on appeal.

While the CFTC obtained this significant judgment, investors may not recover all their losses, as the wrongdoers may lack sufficient funds.

Protecting Yourself in the Crypto Market

This case underscores the importance of due diligence when investing in cryptocurrencies and related projects. Always research projects thoroughly, be wary of unrealistic promises of high returns, and only invest what you can afford to lose.

At Codeum, we’re committed to enhancing blockchain security and promoting responsible development. Our services include smart contract audits, KYC verification, custom smart contract and DApp development, tokenomics and security consultation, and partnerships with launchpads and crypto agencies. Let us help build a safer and more transparent crypto ecosystem.