$7.6M in Restitution for Victims of ‘My Big Coin’ Crypto Fraud

On 10 February 2025, the US District Court for the District of Massachusetts issued a consent order requiring Randall Crater, the founder of a crypto fraud scheme, to pay more than $7.6 million in restitution to victims.

The Commodity Futures Trading Commission (CFTC) also announced that Crater is banned from trading in CFTC-regulated markets, engaging in transactions involving digital asset commodities, and registering with the CFTC.

Crater, based in Heathrow, Florida, was sentenced to over eight years in prison on 31 January 2023, after being convicted in July 2022 of multiple counts of wire fraud, unlawful monetary transactions, and operating an unlicensed money-transmitting business.

The ‘My Big Coin’ Scheme

The sealed indictment reveals that Randall Crater was involved in a deceptive scheme through a digital asset company called “My Big Coin Pay, Inc.”

Between 2014 and at least 2017, Crater and his associates misled investors by promoting a proprietary digital currency they falsely claimed was backed by gold and could be exchanged for government-backed fiat currency and other cryptocurrencies.

This fraudulent operation enabled Crater to raise more than $7.5 million, which he used to fund personal purchases, including a house, cars, artwork, antiques, and jewelry.

Bad Actors Getting More Creative

In September 2023, the Federal Bureau of Investigation reported that cryptocurrency fraud losses in the US exceeded $5.6 billion, marking a 45% increase from the previous year.

Investment fraud emerged as the most frequently reported category, with over 69,000 complaints related to cryptocurrency.

According to Chainalysis, by January 2025, illicit on-chain activities had grown more diverse as cryptocurrencies became more widely accepted, now being used to fund a range of illegal activities, from national security threats to consumer protection violations.

The Federal Trade Commission (FTC) has also issued guidelines to help individuals avoid crypto scams.

Key red flags include requests for payments exclusively in crypto, promises of guaranteed profits or significant returns, and attempts to solicit crypto via dating apps.

The FTC further warns against phrases like “zero risk” and “make lots of money.”