The Commodity Futures Trading Commission (CFTC) has secured a $25.8 million judgment against the operators of My Big Coin, a now-defunct crypto platform accused of defrauding investors.
A Massachusetts federal judge issued the default ruling against My Big Coin Pay Inc., My Big Coin Inc., and executives Mark Gillespie and John Roche on June 5.
The ruling includes $19.32 million in civil penalties and $6.44 million in restitution to 28 investors who were misled by false promises about the coin’s value and gold backing.
💸 What Was the My Big Coin Scheme?
Between 2014 and 2017, Gillespie, Roche, and convicted fraudster Randall Crater allegedly lured investors by claiming:
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My Big Coin (MBC) was backed by gold
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MBC was actively traded and valuable
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It functioned like a legitimate cryptocurrency
In reality, the coin had no real market presence or backing. The CFTC determined the trio misused investor funds and fabricated information to sustain the scheme.
One defendant, Michael Kruger, was dropped from the case following his death.
🧾 Legal Fallout: Crater Already Behind Bars
Randall Crater, the scheme’s ringleader, was convicted in 2022 on multiple fraud charges and sentenced in 2023 to over 8 years in prison.
He has already been ordered to repay $7.6 million and was denied a retrial earlier in 2024 after arguing his constitutional rights were violated.
⚠️ CFTC Warns Victims May Not Be Repaid
Despite the court’s order for restitution, the CFTC warns that victims may never recover their lost funds, as the operators likely lack sufficient assets.
All parties involved in the case are now banned from participating in any CFTC-regulated markets.
🧠 Investor Takeaway: Due Diligence Is Critical
This case highlights the importance of verifying the legitimacy of crypto projects, especially those claiming asset backing or guaranteed returns.
Always check if platforms are registered, licensed, and transparent — especially when they solicit investment.
For more insights on crypto fraud cases and investor protection, visit https://cryptodicenews.blog
