Founders Facing $25.8M Fine for Deceiving Cryptocurrency Investors

A federal court in Massachusetts has mandated that My Big Coin Pay, Inc. and My Big Coin, Inc., along with individuals Mark Gillespie from Michigan and John Roche from California, collectively pay close to $25.8 million in penalties and restitution to the Commodity Futures Trading Commission (CFTC).

This ruling, issued by the US District Court for the District of Massachusetts, is the result of an ongoing digital asset fraud operation connected to the deceptive promotion of a virtual currency called My Big Coin (MBC).

Included in the court’s judgement is a civil monetary penalty of $19.3 million, along with $6.4 million in restitution for victims who were misled regarding the coin’s alleged value and support.

From January 2014 to June 2017, the defendants falsely advertised MBC as a digital currency with gold backing, claiming it was actively traded on recognized platforms. However, in reality, the currency had no actual support or market involvement.

More than $6 million was obtained from at least 28 customers under false pretenses, with most of the funds being misused by co-defendant Randall Crater, who was previously sentenced to over eight years in prison for his involvement in the fraud.

The latest ruling addresses the CFTC’s civil enforcement actions against Gillespie, Roche, and the two Nevada-based companies tied to My Big Coin. The court has also imposed a lifetime trading ban on these defendants, preventing them from participating in CFTC-regulated markets or registering with the agency.

Earlier, Crater was sentenced in a distinct criminal case, where he was ordered to forfeit and repay over $7.6 million.

The agency emphasized that orders for repayment to victims might not lead to recovery of lost funds since the wrongdoers may lack sufficient financial resources or assets. The CFTC remains committed to protecting customers and ensuring that the responsible parties are held accountable.