Randall Crater, founder of My Big Coin, has been ordered to pay over $7.6 million for defrauding investors in a digital asset scheme.
Details of the Court Order
The U.S. District Court for the District of Massachusetts issued a consent order against Randall Crater, requiring him to pay more than $7.6 million in restitution for defrauding investors. The Commodity Futures Trading Commission (CFTC) also permanently banned Crater from participating in CFTC-regulated markets and any commodity-related transactions.
The My Big Coin Scheme
From 2014 to 2018, Crater and his associates marketed My Big Coin as a digital currency backed by gold. The scheme raised over $7.6 million from at least 28 investors through misleading claims about the token’s value and financial institution affiliations. Instead of investing the funds, Crater used them to purchase luxury goods, including jewelry, fine art, and antiques.
Court Ruling and Its Implications
Crater was convicted in a parallel criminal case, receiving a sentence of over eight years in prison for wire fraud and operating an unlicensed money-transmitting business. The CFTC cautioned that while restitution orders aim to return funds to victims, actual recovery depends on the availability of assets.
The court's decision against Crater is part of a broader CFTC case involving other individuals and companies related to My Big Coin. The federal court's ruling sets a precedent confirming CFTC's authority to bring charges for cryptocurrency-related fraud.
