My Big Coin Executives Ordered to Pay $25.8 Million in Fines for Fraud

The alleged operators of My Big Coin have been ordered to pay around $25.8 million in fines to the Commodity Futures Trading Commission (CFTC) for their roles in the crypto scheme. The CFTC announced on Wednesday that a Massachusetts federal court judge entered a default judgment ordering My Big Coin Pay, Inc., My Big Coin, Inc., and its executives, Mark Gillespie and John Roche, to pay $19.32 million in civil monetary penalties and $6.44 million to investors they allegedly defrauded. Gillespie, Roche, and the companies were also barred from participating in markets or conducting any other market-related activities that fall under the jurisdiction of the CFTC.

The CFTC claimed that Gillespie, Roche, and another operator, Randall Crater, solicited investors through My Big Coin (MBC) from January 2014 to June 2017, defrauding 28 investors out of over $6 million. The regulator’s case against one alleged operator, Michael Kruger, was dropped due to his death. The CFTC claimed that the defendants solicited investors under false pretenses and made “false and misleading claims and omissions about MBC’s value, usage, and trade status, and that MBC was backed by gold.”

The CFTC cautioned defrauded investors that they might not get their money back “because the wrongdoers may not have sufficient funds or assets.” Earlier this year, the court ordered Crater to pay $7.6 million to investors he allegedly defrauded. In February 2024, an appellate court denied Crater a new trial, as his legal team had stated that the court had violated his Sixth Amendment rights. On Jan. 31, 2023, Crater was sentenced to over eight years in prison after he was convicted in July 2022 by a grand jury for four counts of wire fraud, three counts of unlawful monetary transactions and one count of operating an unlicensed money-transmitting business.

Executives from My Big Coin, a cryptocurrency company, have agreed to pay nearly $26 million in fines to the CFTC. This settlement comes as a result of allegations that the company and its executives engaged in fraudulent activities related to the promotion and sale of My Big Coin, a digital currency. The CFTC's enforcement action highlights the regulatory body's commitment to protecting investors from fraudulent schemes in the cryptocurrency market.

The CFTC's investigation revealed that My Big Coin executives made false and misleading statements about the digital currency's backing and its potential for significant returns. These misrepresentations were used to attract investors, many of whom were unaware of the true nature of the investment. The CFTC's action underscores the importance of transparency and honesty in the cryptocurrency industry, where investors often face complex and evolving risks.

The nearly $26 million in fines will be distributed to investors who were harmed by the fraudulent activities of My Big Coin executives. This settlement serves as a reminder to investors to conduct thorough due diligence before investing in digital currencies and to be wary of promises of guaranteed returns. The CFTC's enforcement action also sends a clear message to other cryptocurrency companies and their executives that fraudulent activities will not be tolerated and will result in severe consequences.

The settlement with My Big Coin executives is part of a broader effort by the CFTC to regulate the cryptocurrency market and protect investors from fraudulent schemes. The regulatory body has been actively monitoring the market for potential violations and taking enforcement actions against companies and individuals that engage in fraudulent activities. This proactive approach is essential for maintaining the integrity of the cryptocurrency market and ensuring that investors are protected from harm.

The CFTC's enforcement action against My Big Coin executives is a significant development in the ongoing effort to regulate the cryptocurrency market. The nearly $26 million in fines serves as a deterrent to other companies and individuals that may be considering engaging in fraudulent activities. The settlement also highlights the importance of transparency and honesty in the cryptocurrency industry, where investors often face complex and evolving risks. As the market continues to evolve, it is essential for regulatory bodies to remain vigilant and take enforcement actions against companies and individuals that engage in fraudulent activities.