The CFTC Files Fraud Charges Against My Big Coin Pay’s ICO Scam
- Last week, the CFTC filed federal charges of fraud and misappropriation against three separate digital coin operators.
The US derivatives watchdog said on Wednesday that it has filed charges against privately held My Big Coin Pay, the corporate parent of the online cryptocurrency payment platform and virtual wallet website MyBigCoin.com.
Last week, the CFTC CFTC The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss Read this Term filed federal charges for fraud and misappropriation against three separate digital coin operators, alleging that they had defrauded customers and broken other commodity trading rules.
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Specifically, the CFTC charged New York resident Randall Crater, Mark Gillespie of Michigan and their company with misappropriating money from customers they had solicited for providing virtual-currency trading and other services.
In a criminal complaint filed in Massachusetts district court, the CFTC describes how My Big Coin sold digital tokens known as 'MBC' as part of a purported ICO that allows investors to enjoy a lavish lifestyle, including travel, entertainment, jewelry purchases and “much more across the world.”
The agency also obtained an emergency asset order, citing the movements of the ICO funds into different accounts.
The CFTC alleges that between approximately January 2014 and January 2018, the defendants and the Las Vegas-based corporation fraudulently solicited more than $6 million from swindled investors.
The agency alleged that the MBC website made false statements to prospective investors, as well as purposefully misrepresenting that the token was backed by gold, partnered with MasterCard, when in fact it was not.
The fraudsters also represented the MBC token to investors as being used to “to purchase a home, antiques, fine art, jewelry, luxury goods, furniture, interior decorating and other home improvement services, travel, and entertainment.”
Founded in December of 2013, My Big Coin is a virtual currency wallet and platform that allegedly allows merchants and consumers to process transactions with its own digital currency.
Director of Enforcement James McDonald, stated: “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 Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term 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.”
The US derivatives watchdog said on Wednesday that it has filed charges against privately held My Big Coin Pay, the corporate parent of the online cryptocurrency payment platform and virtual wallet website MyBigCoin.com.
Last week, the CFTC CFTC The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss Read this Term filed federal charges for fraud and misappropriation against three separate digital coin operators, alleging that they had defrauded customers and broken other commodity trading rules.
Discover credible partners and premium clients at China’s leading finance event!
Specifically, the CFTC charged New York resident Randall Crater, Mark Gillespie of Michigan and their company with misappropriating money from customers they had solicited for providing virtual-currency trading and other services.
In a criminal complaint filed in Massachusetts district court, the CFTC describes how My Big Coin sold digital tokens known as 'MBC' as part of a purported ICO that allows investors to enjoy a lavish lifestyle, including travel, entertainment, jewelry purchases and “much more across the world.”
The agency also obtained an emergency asset order, citing the movements of the ICO funds into different accounts.
The CFTC alleges that between approximately January 2014 and January 2018, the defendants and the Las Vegas-based corporation fraudulently solicited more than $6 million from swindled investors.
The agency alleged that the MBC website made false statements to prospective investors, as well as purposefully misrepresenting that the token was backed by gold, partnered with MasterCard, when in fact it was not.
The fraudsters also represented the MBC token to investors as being used to “to purchase a home, antiques, fine art, jewelry, luxury goods, furniture, interior decorating and other home improvement services, travel, and entertainment.”
Founded in December of 2013, My Big Coin is a virtual currency wallet and platform that allegedly allows merchants and consumers to process transactions with its own digital currency.
Director of Enforcement James McDonald, stated: “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 Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term 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.”