Fast Facts
-
A Massachusetts court has ordered My Big Coin companies and individuals to pay $25.8 million in penalties to the CFTC for a fraudulent digital currency scheme involving My Big Coin (MBC).
-
The court ruling includes a $19.3 million civil penalty and $6.4 million in restitution for deceived customers who were misled into believing MBC was a backed and functional currency.
-
From January 2014 to June 2017, defendants falsely promoted MBC, collecting over $6 million from at least 28 customers, with funds misappropriated by co-defendant Randall Crater, who was previously imprisoned for his role.
- The CFTC warns that repayment orders may not guarantee recovery for victims, emphasizing their commitment to ensuring accountability for fraudulent actors.
Founders Hit With $25.8M Penalty for Defrauding Crypto Investors
A Massachusetts federal court has taken decisive action against My Big Coin Pay, Inc. and My Big Coin, Inc. The court ordered founders Mark Gillespie and John Roche to pay nearly $25.8 million in penalties. This ruling highlights the ongoing battle against fraud in the cryptocurrency space.
The U.S. District Court for the District of Massachusetts issued the order on Wednesday. The ruling stems from a multi-year digital asset fraud scheme involving My Big Coin (MBC). Specifically, the court imposed a $19.3 million civil penalty and $6.4 million in restitution for deceived customers.
From January 2014 to June 2017, the defendants falsely promoted MBC. They claimed it was a fully functional currency backed by gold. However, MBC had no real market presence or support. Consequently, over $6 million came from at least 28 customers who believed the misleading claims.
Co-defendant Randall Crater previously received a prison sentence of more than eight years for his central role in the scheme. He was also ordered to forfeit and repay over $7.6 million. The court’s recent decision wraps up the CFTC’s civil enforcement actions against the defendants and imposes a permanent trading ban.
The Commodity Futures Trading Commission (CFTC) issued a statement regarding the penalties. The agency emphasized that victims may not fully recover their lost funds. Fraudsters might not have sufficient assets, so the fight for accountability continues.
This ruling serves as a reminder for potential investors. It emphasizes the importance of thorough research in the evolving world of cryptocurrencies. Moreover, it may also encourage stricter regulations to protect customers in the technology sector.
As the cryptocurrency landscape develops, lessons from this case can foster accountability and trust. The CFTC remains committed to safeguarding investors and ensuring the integrity of digital asset markets.
Discover More Technology Insights
Stay informed on the revolutionary breakthroughs in Quantum Computing research.
Stay inspired by the vast knowledge available on Wikipedia.
Disclaimer
This content is for informational and entertainment purposes only and does not constitute financial or investment advice. Cryptocurrency is highly speculative and carries significant risk, including the potential loss of your entire investment. Do not make financial decisions based on this information. Consult a licensed financial advisor before investing. This site does not offer, sell, or advise on cryptocurrency, securities or other regulated financial products in compliance with SEC and applicable laws. Please do your own research and seek professional advise.
CryptoV1
