Court Slams My Big Coin With $25M Penalty Over False Cryptocurrency Claims
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 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 prison. Another named individual, Michael Kruger, was dismissed from the case following his death.
Although the court mandated restitution, the CFTC warned that asset recovery is uncertain, citing concerns that the defendants may lack sufficient resources to repay victims. Nonetheless, digital asset advocates maintain that targeted enforcement actions like this should be separated from the broader industry. They argue that regulatory clarity, not broad skepticism, is essential to the growth and legitimacy of blockchain-based finance.
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