The Commodity Futures Trading Commission (CFTC) says a US District Court in Massachusetts has ordered a default judgment against My Big Coin, My Big Coin Pay, and affiliated individuals John Roche and Mark Gillespie to pay a $25.7 million in penalties regarding allegations of digital asset fraud.
According to the CFTC, the order finds that from at least January 2014 through June 2017, the perpetrators, together with co-defendant Randall Crater, one of the other co-defendants named in the CFTC’s amended complaint, fraudulently offered the sale of a fully-functioning virtual currency, My Big Coin (MBC).
The defendants apparently obtained over $6 million from at least 28 customers through fraudulent solicitations, including false and misleading claims, while presenting that MBC was backed by gold.
The CFTC states that Crater misappropriated virtually all the funds.
The court had previously entered a consent order resolving the CFTC’s claims against Crater, who is currently serving time for the scam.
The CFTC dismissed its enforcement action against named co-defendant Michael Kruger because of his death.
The order resolves the claims against Gillespie, Roche, My Big Coin Pay, and My Big Coin.
The CFTC cautions that any penalty may not see the return of pilfered funds to impacted individuals, as defendants may not be able to satisfy the penalty.
