U.S. Court Orders Crypto Project to Pay $26M in Crypto Fraud Case
A Massachusetts federal judge has ordered cryptocurrency company My Big Coin and its executives to pay nearly $26 million in fines and restitution for defrauding investors.
In a major enforcement action, the U.S. Commodity Futures Trading Commission (CFTC) announced that My Big Coin (MBC), along with executives Mark Gillespie and John Roche, must pay $25.8 million for running a fraudulent cryptocurrency scheme.
Millions Misappropriated Through False Gold Claims
The CFTC alleged that between January 2014 and June 2017, the defendants misled at least 28 investors by falsely claiming that MBC was a viable cryptocurrency backed by gold and actively traded. These fraudulent claims led to more than $6 million being funneled into the scheme.
Judge Gillespie ruled that the company and its leaders must pay $19.32 million in civil penalties and $6.44 million in restitution to defrauded investors. The court also barred Roche and his associated entities from participating in any future markets under the CFTC’s jurisdiction.
CFTC: Recovery Uncertain Due to Lack of Funds
In an official warning, the CFTC acknowledged that although the court order demands repayment, actual recovery of lost funds may be difficult. The agency noted that the misappropriated funds were largely embezzled and that the individuals involved may not possess sufficient assets to repay victims.
“The defendants obtained more than $6 million through fraudulent solicitations,” the CFTC said, emphasizing that these were based on “false and misleading claims” about MBC’s value, usage, and supposed backing by gold.
Broader Implications
The ruling highlights ongoing regulatory efforts to crack down on crypto-related fraud, as well as the risks facing investors in the largely unregulated digital asset space. The case serves as a cautionary tale about the dangers of trusting crypto projects that lack transparency or credible backing.
Kosta Gushterov
Reporter at Coindoo
Kosta gehört seit 2021 zum Team und hat seine Position mit seinem Wissensdurst, seinem unglaublichen Engagement und seiner „detektivischen“ Denkweise gefestigt. Er deckt nicht nur eine breite Palette von Trendthemen ab, sondern erstellt auch Rezensionen, PR-Artikel und Bildungsinhalte. Seine Arbeit wurde auch von anderen Nachrichtenagenturen referenziert.
