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Florida Man Ordered To Pay $7,600,000 in Restitution After Promoting Supposed ‘Gold-Backed’ Cryptocurrency Scam

Press Releases Crypto News DailyHodl Florida Man Ordered To Pay $7,600,000 in Restitution After Promoting Supposed ‘Gold-Backed’ Cryptocurrency Scam

A federal court has ordered a Florida resident who operated a digital asset fraud scheme years ago to pay millions of dollars in restitution, according to the U.S. Commodity Futures Trading Commission (CFTC).

The CFTC says that the U.S. District Court for the District of Massachusetts has imposed a consent order on Randall Crater, requiring him to pay more than $7.6 million to victims of his crypto asset scam.

According to the CFTC, Crater fraudulently offered a virtual currency known as My Big Coin (MBC) for sale to dozens of customers between January 2014 and January 2018.

“Crater obtained more than $7.6 million from at least 28 customers through fraudulent solicitations, including false and misleading claims and omissions about MBC’s value, use and trade status, and that MBC was backed by gold. He spent the misappropriated money to purchase, among other things, a home, antiques, fine art, jewelry, and other luxury goods.”

The consent order also places restrictions on Crater with regard to the commodities markets.

“The order also imposes a permanent injunction against Crater and bans him from trading in any CFTC-regulated markets, entering into any transactions involving commodity interests or digital asset commodities, and registering with the CFTC.”

Three years ago, Crater was charged with “wire fraud, unlawful monetary transactions, and operating an unlicensed money transmitting business” over the My Big Coin scam.

“Crater was found guilty of those charges on July 21, 2022, and was sentenced to over eight years in prison and ordered to pay $7.6 million in restitution to defrauded customers and to forfeit $7.6 million, which represented the proceeds he received from his violations.”

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Author: Mark Emem

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