Crypto Scammer Ordered to Pay $7.6M in Restitution

A Florida resident, Randall Crater, has been ordered by a federal court to pay a substantial sum in restitution for his role in a cryptocurrency scam. The U.S. Commodity Futures Trading Commission (CFTC) revealed that the U.S. District Court for the District of Massachusetts has imposed a consent order on Crater, requiring him to pay over $7.6 million to victims of his fraudulent scheme.

According to the CFTC, Crater promoted a virtual currency called My Big Coin (MBC) between January 2014 and January 2018. He deceived customers into purchasing MBC by making false and misleading claims about its value, use, and trade status, and by asserting that it was backed by gold. Crater obtained more than $7.6 million from at least 28 customers and used the misappropriated funds to purchase luxury items such as a home, antiques, fine art, jewelry, and other high-end goods.

The consent order also imposes restrictions on Crater's involvement in the commodities markets. He is permanently banned from trading in any CFTC-regulated markets, entering into transactions involving commodity interests or digital asset commodities, and registering with the CFTC.

In 2019, Crater was charged with wire fraud, unlawful monetary transactions, and operating an unlicensed money transmitting business in connection with the My Big Coin scam. He was found guilty of these charges in July 2022 and sentenced to over eight years in prison. Additionally, he was ordered to pay $7.6 million in restitution to defrauded customers and to forfeit the same amount, which represented the proceeds he received from his violations.