The U.S. District Court for the District of Massachusetts recently ordered Randall Crater, a Florida resident, to pay more than $7.6 million in restitution to victims defrauded in a digital asset fraud scheme, the Commodity Futures Trading Commission (CFTC) said on Feb. 10.
According to the CFTC complaint, Crater and other defendants fraudulently offered My Big Coin, a fully functioning virtual currency, for sale from at least January 2014 through January 2018.
At least 28 customers were defrauded through fraudulent solicitations. Crater made false and misleading claims that My Big Coin was backed by gold and made false and misleading claims and omissions about its value, use and trade status. Crater spent the money on antiques, jewelry, fine art, and a house, among other things.
The order also bans Crater from trading in any CFTC-regulated markets, registering with the CFTC, and entering into any transactions involving commodity interests or digital asset commodities.
Crater was found guilty of unlawful monetary transactions, wire fraud, and operating an unlicensed money transmitting business in 2022 and was sentenced to more than eight years in prison. He was ordered to pay $7.6 million in restitution and to forfeit $7.6 million.
Enforcement action is pending against co-defendants My Big Coin, My Big Coin Pay, Mark Gillespie, Michael Kruger and John Roche.