This Wednesday, a district court of the United States permitted the Commodity Futures Trading Commission to continue the prosecution of My Big Coin Pay Inc., a company located in Nevada, which is accused of committing a fraud in the amount of 6 million US dollars.
With the rising momentum of lawsuits initiated against the digital currency frauds, the CFTC engaged in a pursuit of Randall Crater, a tech entrepreneur, and My Big Coin, the corporate entity owned by him. Crater is being accused of perpetrating a 6 million USD scam, fooling naïve customers who wanted to buy this suspicious digital currency.
According to the lawsuit submitted versus Crater and his company, the CFTC pursued the accused of stealing 6 million US dollars from 28 clients by intentionally choosing a name that sounds similar to Bitcoin and issuing claims of the digital currency being backed by gold. It was further alleged that the accused misled the customers by the fact that their digital currency had been listed on various cryptoexchanges.
Crater’s associate, Mark Gillespie, was also accused for appropriating the financiers’ funds through deception, further redirecting the obtained money to personal bank accounts conspiring with Crater. The defense tried to press for the case dismissal, as digital currencies are neither tangible goods, nor services; however, the court has proven that prosecuting this fraudulent schemer falls directly into the jurisdiction of the CFTC.