A Massachusetts federal court has ruled on a cryptocurrency fraud case involving My Big Coin, mandating defendants to pay significant penalties and restitution.
Court Ruling Overview
The U.S. District Court for the District of Massachusetts has ordered My Big Coin Pay, Inc. and My Big Coin, along with their representatives Mark Gillespie and John Roche, to collectively pay approximately $25.8 million in penalties and restitution to the Commodity Futures Trading Commission (CFTC). The ruling was issued on Wednesday and stems from a long-running digital asset fraud scheme.
My Big Coin Fraud Scheme
According to the CFTC's official press release, from January 2014 to June 2017, the defendants deceived consumers by promoting MBC as a fully functional digital currency backed by gold and actively traded on established platforms. In reality, the currency lacked any such support or market presence.
Consequences for Defendants
The court's decision includes a $19.3 million civil monetary penalty, alongside an additional $6.4 million in restitution for defrauded customers. The defendants are permanently banned from participating in any CFTC-regulated markets. It was revealed that over $6 million was collected from at least 28 customers under false pretenses.
The legal proceedings surrounding My Big Coin highlight the need for better protection for investors against fraudulent schemes in the cryptocurrency sector. Despite court rulings, the CFTC emphasizes that the recovery of funds may depend on the financial situation of the wrongdoers.
