The alleged operators of My Big Coin have been ordered to pay approximately $25.8 million in fines by the Commodity Futures Trading Commission (CFTC) for their involvement in a fraudulent crypto scheme.
According to a statement released by the CFTC on Wednesday, a federal judge in Massachusetts issued a default judgment against My Big Coin Pay, Inc., My Big Coin, Inc., and their executives, Mark Gillespie and John Roche. The judgment includes $19.32 million in civil monetary penalties and $6.44 million in restitution to investors who were allegedly defrauded.
In addition to the financial penalties, Gillespie, Roche, and the companies have been permanently banned from participating in any markets or engaging in activities under the CFTC’s jurisdiction.
CFTC Says My Big Coin Defrauded Investors of $6 Million
The CFTC alleges that from January 2014 to June 2017, Mark Gillespie, John Roche, and fellow operator Randall Crater solicited investments through My Big Coin (MBC), defrauding 28 investors out of more than $6 million.
The CFTC dropped its case against one alleged operator, Michael Kruger, following his death.
The regulator alleged that the remaining defendants lured investors under false pretenses, making “false and misleading claims and omissions” about My Big Coin’s (MBC) value, utility, and trade status—including the claim that MBC was backed by gold.
The CFTC also warned defrauded investors that they might not recover their losses, as the perpetrators may lack sufficient assets or funds.
Crater Ordered to Repay Allegedly Defrauded Investors
Earlier this year, the court ordered Randall Crater to repay $7.6 million to investors he allegedly defrauded.
In February 2024, an appellate court rejected Crater’s request for a new trial, despite claims from his legal team that his Sixth Amendment rights had been violated.
Crater was sentenced on January 31, 2023, to more than eight years in prison after a grand jury convicted him in July 2022 on four counts of wire fraud, three counts of unlawful monetary transactions, and one count of operating an unlicensed money-transmitting business.
