A federal judge in Massachusetts has ordered two companies and their former executives to pay nearly $26 million in penalties and repayments over a fraudulent cryptocurrency scheme.
The case, brought by the Commodity Futures Trading Commission (CFTC) on June 11, focused on My Big Coin Pay Inc., My Big Coin Inc., and the individuals behind them, Mark Gillespie and John Roche.
According to the ruling, the defendants must pay $19.32 million in civil fines to the CFTC and return $6.44 million to 28 investors who were misled.
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They are also permanently banned from taking part in any market activity that falls under the CFTC’s authority.
The CFTC accused Gillespie, Roche, and a third man, Randall Crater, of promoting My Big Coin (MBC) between 2014 and 2017 using false claims. The group allegedly told investors that MBC was backed by gold, held real value, and could be traded like other cryptocurrencies.
The CFTC stated that these claims were not true and that the information shared with investors was either misleading or incomplete.
Another person named in the case, Michael Kruger, was no longer part of the legal process after his passing. The remaining defendants have not contested the charges, which led to the default judgment.
While the court ordered the repayment of investor funds, the CFTC warned that full recovery is unlikely. The agency stated that the defendants may not have enough money or assets to repay everyone who lost funds in the scheme.
On June 9, the Department of Justice arrested Iurii Gugnin, the founder of the crypto firm Evita Pay. Why? Read the full story.
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