"Mastermind of My Big Coin Scam Ordered to Pay $7.6M Penalty"

In a significant development, Randall Crater, the mastermind behind the My Big Coin cryptocurrency scheme, has been ordered to pay a penalty of $7.6 million by the Massachusetts district court. The U.S. Commodity Futures Trading Commission (CFTC) played a crucial role in bringing this case to light.

The CFTC's order highlights that Crater operated a digital asset fraud scheme from 2014 to 2018, under the guise of My Big Coin. He claimed that this virtual coin would revolutionize inter-state commerce. Crater solicited investments from at least 28 traders, totaling around $7.6 million. Some investors were misled about the value and trading status of the coin.

The CFTC's order also reveals that Crater used the funds to pay for personal expenses, including luxury cars, jewelry, and travel. The penalty will be used to settle claims from the victims of this fraudulent scheme.

This case is part of a broader trend of increasing asset frauds in the U.S. In recent months, Western Asset CIO Ken Leech was charged with cherry-picking trades and favoring clients. TD Bank also faced claims of potential money laundering and paid over $3 million in settlements. President Trump, meanwhile, paid $175 million worth of bonds to prevent the seizure of his assets under a New York civil fraud case.

The crypto world is not immune to such fraudulent activities. As the industry continues to grow, it is essential for investors to be vigilant and conduct thorough due diligence before investing in any cryptocurrency scheme.