U.S. Court Orders Restitution in High-Profile Digital Asset Fraud Scheme

February 10, 2025 — A significant ruling was made by the U.S. Commodity Futures Trading Commission (CFTC) when the U.S. District Court for the District of Massachusetts entered a consent order against Randall Crater, a resident of Heathrow, Florida. This legal action arises from Crater’s involvement in a fraudulent digital asset scheme, resulting in a restitution order exceeding $7.6 million directed to victims of his fraudulent operations.

Details of the Consent Order

The consent order, which mandates Crater to pay restitution to defrauded customers, provides that he will receive dollar-for-dollar credit for any payments made to the victims in satisfaction of a parallel criminal action against him. In addition to the financial restitution, the court has imposed a permanent injunction against Crater, prohibiting him from trading in any markets regulated by the CFTC, entering transactions involving commodity interests or digital asset commodities, and registering with the CFTC.

The CFTC’s investigation revealed that, from at least January 2014 through January 2018, Crater and several other defendants operated a fraudulent scheme promoting a virtual currency named My Big Coin (MBC). Through deceptive practices, Crater allegedly solicited investments from at least 28 individuals, claiming MBC was fully operational, backed by gold, and actively tradable. In total, he garnered over $7.6 million through a series of misleading statements regarding the coin’s value, use, and legitimacy.

The CFTC found that Crater misappropriated these funds for personal luxuries, purchasing items such as a house, antiques, fine art, jewelry, and other high-end goods.

Ongoing Enforcement Actions

This consent order resolves the CFTC’s claims against Crater. However, enforcement actions against his co-defendants—Mark Gillespie, My Big Coin Pay, Inc., My Big Coin, Inc., John Roche, and Michael Kruger—remain active and unresolved. The CFTC continues to emphasize that while they pursue restitution for victims, recovery of lost funds is not guaranteed as the defendants may lack sufficient resources or assets.

Criminal Proceedings Against Crater

The fraud allegations against Randall Crater extend beyond the CFTC’s jurisdiction. On January 18, 2022, a grand jury indicted him on multiple counts, including wire fraud, unlawful monetary transactions, and operating an unlicensed money transmitting business, based on the same conduct outlined in the CFTC’s amended complaint. Crater was convicted of these charges on July 21, 2022, receiving a substantial prison sentence of over eight years. He was also ordered to pay the same amount of $7.6 million in restitution to his defrauded customers, in addition to forfeiting the equivalent sum representing the proceeds from his illegal activities.

CFTC’s Commitment to Consumer Protection

In light of the fraudulent activities associated with digital assets, the CFTC has reiterated its commitment to protecting customers and holding wrongdoers accountable. The agency cautions potential victims that while restitution orders have been issued, actual recovery of funds may prove difficult, as perpetrators might be unable to satisfy these orders due to a lack of available assets.

The CFTC remains vigilant in its enforcement actions across the evolving landscape of digital assets, reflecting an ongoing effort to address and combat fraudulent schemes within this sector.