Federal Court Orders Randall Crater to Pay Over $7.6 Million in Restitution for My Big Coin Crypto Scheme

The Commodity Futures Trading Commission (CFTC) announced that the U.S. District Court for the District of Massachusetts has entered a consent order against Randall Crater of Heathrow, Florida, ordering him to pay more than $7.6 million in restitution to victims of a digital asset fraud scheme. In addition to the financial penalty, the order imposes a permanent injunction against Crater. He is permanently banned from trading in any CFTC-regulated markets, entering into any transactions involving commodity interests or digital asset commodities, and registering with the agency. Restitution payments made by Crater will receive dollar-for-dollar credit against the restitution previously ordered in a parallel criminal case. The consent order finds that from at least January 2014 through January 2018, Crater and other defendants operated a scheme fraudulently marketing a virtual currency called "My Big Coin" (MBC). Crater raised over $7.6 million from at least 28 customers through deceptive solicitations, falsely claiming that MBC was a fully functioning virtual currency backed by gold and misrepresenting its value, utility, and trading status. The misappropriated investor funds were used to buy a home, antiques, fine art, jewelry, and other luxury items. In a parallel criminal action, a federal grand jury indicted Crater in January 2022 on charges of wire fraud, unlawful monetary transactions, and operating an unlicensed money transmitting business. Crater was convicted in July 2022, sentenced to more than eight years in prison, and ordered to pay $7.6 million in restitution and forfeit an additional $7.6 million. The consent order resolves the CFTC's claims against Crater, while enforcement proceedings remain pending against co-defendants Mark Gillespie, John Roche, Michael Kruger, My Big Coin Pay, Inc., and My Big Coin, Inc. The CFTC cautioned that restitution orders may not guarantee the recovery of lost funds if defendants lack sufficient assets.