A staggering $25 million in penalties and restitution has been levied in a landmark federal court ruling, exposing a sham crypto project that duped investors with bogus claims of gold backing and market viability.

CFTC Secures Judgment Against My Big Coin for Crypto Fraud Scheme

The Commodity Futures Trading Commission (CFTC) announced on June 11 that a Massachusetts federal court issued a final default judgment against two individuals and two companies for orchestrating a deceptive digital asset scheme. Mark Gillespie of Michigan, John Roche of California, and Nevada-based My Big Coin Pay Inc. and My Big Coin Inc. were found liable for defrauding customers through misleading claims about a virtual currency called My Big Coin (MBC). The CFTC outlined:

The order requires Gillespie, My Big Coin Pay Inc., My Big Coin Inc., and Roche to pay jointly and severally a $19,326,324 civil monetary penalty and $6,442,108 in restitution to defrauded victims in connection with their role in a digital asset fraud scheme.

The judgment stems from fraudulent conduct that took place between 2014 and 2017. During that time, the defendants promoted MBC as a legitimate, gold-backed cryptocurrency that was in active circulation. The court found these claims to be entirely fabricated, resulting in more than $6 million collected from at least 28 individuals.

The money was largely misappropriated by co-conspirator Randall Crater, who has already been convicted and sentenced to 100 months in...

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