US regulator files lawsuit against My Big Coin Ponzi Scheme

One of the key US regulators, the US Commodity Futures Trading Commission, filed lawsuit against My Big Coin Ponzi Scheme. The fraudulent project has ill-gained $6 million.

25 January, AtoZForex Yesterday, the US Commodity Futures Trading Commission (CFTC) has informed the public that it has filed a lawsuit against the team behind My Big Coin project. The regulator states that the project is allegedly is a cryptocurrency scam that has cost investors $6 million.

US regulator files lawsuit against My Big Coin Ponzi Scheme

The CFTC case was unsealed today, while it charges Randall Crater, Mark Gillespie and My Big Coin Pay, Inc. with commodity fraud. The case also charges the abovementioned with misappropriation of funds that have been raised for a cryptocurrency known as My Big Coin (MBC).

According to the CFTC filing, the misappropriation charges contain “transferring customer funds into personal bank accounts, and using those funds for personal expenses and the purchase of luxury goods” including “home, antiques, fine art, jewelry, luxury goods, furniture, interior decorating and other home improvement services, travel, and entertainment.”

The US regulator further states that two defendants have operated a website for the fake cryptocurrency which did not exist. The website has been making a number of false and misleading claims. These include statements that MBC has been traded on multiple exchanges. The website also has been quoting the daily trading price for a coin that did not exist.

In addition, the team behind My Big Coin has claimed that the digital currency is backed by gold. They also claimed fake partnership with MasterCard.

CFTC Policies the Crypto Market

According to the CFTC statement:

“In reality, as alleged, the supposed trading results were illusory, and any payouts to customers were derived from funds fraudulently obtained from other customers in the manner of a Ponzi scheme”

The CFTC Director of Enforcement James McDonald has commented on the case:

“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.

In addition to harming customers, fraud in connection with virtual currencies inhibits potentially market-enhancing developments in this area. We caution potential virtual currency customers, once again, that they should engage in appropriate diligence before purchasing virtual currencies.”

My Big Coin is the latest scam that appears to be unmasked in the sea of other cryptocurrency scams. Be very careful and always double check the reliability of the project!

Think we missed something? Let us know in the comments section below.

    Share Your Opinion, Write a Comment