Following a press release by the U.S. Commodity Futures Trading Commission (CFTC), an announcement was made that it has filed a federal court enforcement action against Randall Crater of East Hampton, New York, Mark Gillespie of Hartland, Michigan, and My Big Coin Pay, Inc. The Senior U.S. District Court Judge in charge of the case has denied the motion to demise filled by the defendants. The Judge further confirms that the CFTC may continue its oversight of all cryptocurrencies.
CFTC Filed Law Suit Against Randall Crater
On 24 January 2018, the CFTC filed a case against Randall Crater and his estate. The content of the case states that he misappropriated over $6 million received from customers. He was also said to be transferring customer funds into his personal bank accounts and using those funds for personal expenses and the purchase of luxury goods.
As of now, the Judge on the case, Rya Zobel of the U.S. District Court for the District of Massachusetts, has issued a Restraining Order, and she also ordered for the freezing of the Defendants’ assets.
From the case records, the regulator Complaint states that the Defendants’ “fraudulent acts and practices” were in violation of Section 6(c)(l) of the Commodity Exchange Act (CEA) and the Commission’s Regulation 180.l(a).
The record also said that “virtual currencies are encompassed in the definition of ‘commodity’ under Section la(9) of the Act.”
What Randall Lawyers Has to Say About the Rulings
Randall Crater’s lawyer, Katherine Cooper, has tried to dismiss the case, but to no avail.
The lawyer made a statement saying:
We are disappointed in the result. Now that we are moving past the motion to dismiss phase of the case, we look forward to challenging the CFTC’s ability to prove many of the factual allegations in the complaint. Among those factual allegations are those which speak to the relatedness of bitcoin and My Big Coin and therefore the CFTC’s jurisdiction.