A Massachusetts court has ordered nearly $25.8 million in damages against the parties behind My Big Coin. The ruling was made on Wednesday.
Overview of My Big Coin Case
The court found My Big Coin Pay, Inc. and My Big Coin, Inc. guilty of fraud related to cryptocurrency activities. Leaders Mark Gillespie and John Roche were found guilty of misleading investors. The fraud occurred between January 2014 and June 2017, during which they claimed that My Big Coin was backed by gold and presented lucrative trading opportunities.
Financial Consequences for the Fraudsters
As per the ruling, Gillespie and Roche are required to pay a $19.32 million fine and return $6.44 million to 28 defrauded investors. The court has barred them and their companies from participating in any market activities regulated by the Commodity Futures Trading Commission (CFTC).
Next Steps and Implications for Investors
The case against another participant, Michael Kruger, was dropped due to his passing. The CFTC has warned that the cheated investors may not recover all their funds due to potential inadequacies in the fraudster's assets. Randall Crater was previously convicted of fraud and sentenced to over eight years in prison, as well as ordered to pay $7.6 million in restitution.
The court's ruling highlights the serious repercussions of fraud in the cryptocurrency sector and emphasizes the need for investor protection against dishonest practices.
