The Commodity Futures Trading Commission (CFTC) has secured a final default judgment against Mark Gillespie, John Roche, and two Nevada-based entities—My Big Coin Pay, Inc. and My Big Coin, Inc.—for their roles in a fraudulent digital asset scheme.
The U.S. District Court for the District of Massachusetts ordered the defendants to pay $19.3 million in civil monetary penalties and $6.4 million in restitution to defrauded victims. Additionally, the court issued a permanent injunction banning them from participating in CFTC-regulated markets, trading digital commodities, or registering with the Commission.
The Scheme
From January 2014 to June 2017, the defendants misled investors into buying My Big Coin (MBC)—a supposed virtual currency they falsely claimed was backed by gold, fully functional, and actively traded. The CFTC found that more than $6 million was raised from at least 28 customers through false claims and omissions.
Much of the money was misappropriated, with co-defendant Randall Crater (previously convicted and imprisoned) using funds for personal expenses. While one defendant, Michael Kruger, was dismissed from the case due to his death, the court held the remaining individuals and entities liable.
The Court’s Decision
The default order imposes significant financial penalties and bars the defendants from:
- Trading in any CFTC-regulated markets
- Engaging in digital asset commodity transactions
- Registering with the CFTC in any capacity
It also serves as final resolution to the Commission’s enforcement action against the involved parties. In a related criminal case, Crater was sentenced to 100 months in prison and ordered to pay over $7.6 million in restitution and forfeiture.
Lessons from a $25M Crypto Scam
While most prop trading firms focus on regulated assets and institutional practices, this case serves as a reminder that crypto fraud continues to draw heavy regulatory fire.
What it reinforces:
- Digital assets are commodities under CFTC jurisdiction.
- Misleading marketing and false claims carry steep consequences.
- Reputation, compliance, and transparency remain critical—whether in traditional or digital markets.
For firms engaging with tokenized assets or digital derivatives, this judgment signals that oversight is growing—and it’s global.
Stay with PropInsider for full coverage of regulatory actions, enforcement trends, and what they mean for the evolving trading landscape.
