The Commodity Futures Trading Commission (CFTC) has filed a lawsuit against “a virtual currency know as My Big Coin (MBC).” The CFTC alleges that the company raised more than $6 million USD by making false and misleading claims regarding the cryptocurrency’s utility and backing.
My Big Coin Latest Virtual Currency to Be Targeted by CFTC
The CFTC accuses My Big Coin of “misappropriating over $6 million from customers […] and using those funds for personal expenses and the purchase of luxury goods.” The complaint is filed against Randall Crater, the founder of the cryptocurrency, Mark Gillespie, who is accused of soliciting customers on behalf of the scheme, and My Big Coin, Inc.
My Big Coin is accused of “fraudulently soliciting potential and existing MBC customers throughout the United States by making false and misleading claims and omissions about MBC’s value, usage, and trade status,” including, among other claims, that “MBC was backed by gold.” The company also issued “payouts to customers [that] were fraudulently obtained from other customers in the manner of a Ponzi scheme.”
More Than $5 Million USD Was “Fraudulently Solicited From Customers in the District of Massachusetts”
James Macdonald, The CFTC’s Director of Enforcement, stated: “As this case shows, the CFTC is actively policing the virtual currency markets and will vigorously enforce the anti-fraud provisions of the Commodity Exchange Act…