In a significant ruling that highlights the ongoing scrutiny of cryptocurrency-related fraud, executives from the My Big Coin project have been ordered to pay nearly $26 million in penalties.
<u>Key Takeaways: </u>
- $26M Penalty for My Big Coin Executives: The CFTC has ordered Mark Gillespie and John Roche to pay $26 million in fines for their roles in the My Big Coin crypto fraud;
- Fraudulent Scheme Involving $6M in Investor Losses: The My Big Coin case saw 28 investors defrauded out of $6 million, based on false claims about the crypto asset’s value and gold backing;
- Randall Crater’s Sentence: Crater, the CEO of My Big Coin, was sentenced to over eight years in prison for his role in the fraud and ordered to pay $7.6 million in restitution to victims.
The Commodity Futures Trading Commission announced on June 7, 2025, that a Massachusetts federal court had entered a default judgment against My Big Coin Pay, Inc., My Big Coin, Inc., and its executives, Mark Gillespie and John Roche, for their roles in operating a fraudulent crypto scheme.
This latest development adds to the long-running saga of My Big Coin’s illegal operations, which resulted in defrauding investors of millions of dollars. The CFTC’s ruling underscores the growing pressure on crypto operators to ensure compliance with U.S. regulations, particularly regarding investor protection and the truthfulness of claims made about crypto assets.
My Big Coin, launched in 2014, promised investors a new cryptocurrency backed by gold. However, the CFTC contended that the token’s creators misled investors by falsely claiming that the digital asset was backed by physical gold, and that it was traded on legitimate exchanges, which was not the case. The scheme was primarily marketed to retail investors, who were told that MBC was a highly valuable asset, only to discover later that the claims were misleading.
According to the CFTC’s findings, the executives solicited over $6 million from 28 investors between January 2014 and June 2017, based on these fraudulent claims. Despite the promises, My Big Coin was never traded on any recognized exchange, and the token lacked real-world backing, leaving investors with worthless assets.
The court's judgment includes a hefty $19.32 million civil monetary penalty, with an additional $6.44 million to be paid to the investors defrauded by the scheme. These fines aim to serve as a deterrent to other crypto operators who might consider engaging in similar deceptive practices.
Barred from Market Activities
In addition to the financial penalties, the court also barred the My Big Coin executives, Mark Gillespie and John Roche, from participating in any market-related activities regulated by the CFTC. This includes engaging in activities such as trading or participating in the creation of financial products that fall under the jurisdiction of the Commission.
This prohibition is part of the broader regulatory push to ensure that individuals involved in fraudulent schemes are unable to return to the crypto market, safeguarding future investors from similar risks.
This ruling serves as a significant milestone in the CFTC’s ongoing efforts to clean up the cryptocurrency space, which has often been criticized for its lack of regulatory oversight. By holding these executives accountable, the CFTC hopes to send a strong message about the importance of maintaining transparency and honesty in crypto transactions.
The Story of Randall Crater
The My Big Coin case also involves the conviction of Randall Crater, one of the original operators of the scam, who was sentenced earlier this year. Crater, who was the CEO of My Big Coin, was ordered to pay back $7.6 million in restitution to the victims of the fraud. This restitution amount represents the funds that Crater allegedly misappropriated from investors.
Crater’s conviction and subsequent sentence marked a significant chapter in the legal proceedings against My Big Coin. In February 2024, an appellate court denied Crater’s request for a new trial, further cementing his role in the fraudulent scheme.
Crater was sentenced to over eight years in prison for his involvement in defrauding investors and for operating an unlicensed money-transmitting business.
This case highlights the increasing legal consequences faced by individuals involved in crypto fraud. It also emphasizes the potential for severe financial penalties and prison time for those who attempt to exploit the lack of regulatory clarity in the crypto market.
The CFTC’s Role in Crypto Regulation
The CFTC has been at the forefront of regulating the cryptocurrency market in the U.S., focusing on ensuring that investors are protected and that fraud is kept in check. This recent ruling against My Big Coin is part of a broader regulatory crackdown, where the CFTC has increasingly scrutinized the activities of both established and emerging cryptocurrency projects.
The CFTC’s decision to impose fines and issue penalties against the My Big Coin executives is consistent with its role as a watchdog over commodities and derivatives markets, which includes digital assets like Bitcoin and Ethereum. The Commission has been actively pursuing actions against fraudulent schemes, offering guidance on how firms should operate in the crypto space while emphasizing the importance of compliance with financial regulations.
As cryptocurrencies continue to grow in popularity, the CFTC’s actions underscore the need for clear and comprehensive regulations. Without these regulations, there is a risk that bad actors will continue to exploit market vulnerabilities, resulting in significant financial harm to investors.
Industry Reaction
The My Big Coin case is yet another example of the growing pains that the cryptocurrency market is facing as it matures. While the decentralized nature of crypto offers numerous benefits, it also presents unique challenges when it comes to investor protection. Fraudulent schemes like My Big Coin raise serious concerns about the ability of investors to verify the legitimacy of crypto projects.
For the crypto industry, this case represents an opportunity to further build credibility and trust with investors. As regulatory bodies like the CFTC and SEC continue to take action against bad actors, it may ultimately lead to stronger, more transparent crypto markets. This could help institutional investors feel more confident in entering the space, which could drive the broader adoption of digital assets.
Additionally, this case highlights the growing importance of due diligence in the crypto space. Investors must be vigilant and carefully evaluate projects before committing significant amounts of capital. As the crypto industry matures, it is crucial that both individual investors and institutional players understand the risks involved in investing in digital assets.
This case serves as a reminder that the cryptocurrency industry must evolve alongside regulatory frameworks. Regulatory clarity is essential to fostering a healthy and sustainable market. While this case is a setback for My Big Coin and its executives, it is ultimately a positive development for the crypto ecosystem as it pushes the market towards greater accountability and transparency.
For Ripple and other firms in the crypto space, the legal precedent set by the My Big Coin case could have important implications. As regulators continue to tighten the rules around digital assets, companies in the industry will need to ensure they operate within legal boundaries and adhere to the same standards expected of traditional financial institutions.