According to Cointelegraph, the US District Court for the District of Massachusetts has issued a consent order against Randall Crater, a resident of Heathrow, Florida, mandating him to pay over $7.6 million in restitution to victims of a cryptocurrency fraud scheme. This announcement was made by the Commodity Futures Trading Commission (CFTC) on February 10, 2025. The court order also prohibits Crater from participating in any CFTC-regulated markets, engaging in transactions involving digital asset commodities, and registering with the CFTC.
Crater's legal troubles began when the US Attorney’s Office for the District of Massachusetts revealed on January 31, 2023, that he was sentenced to more than eight years in prison. This followed his conviction in July 2022 by a federal jury on charges including four counts of wire fraud, three counts of unlawful monetary transactions, and operating an unlicensed money-transmitting business. The indictment, which was initially sealed, accused Crater of orchestrating a fraudulent scheme through a digital asset company named “My Big Coin Pay, Inc.” From around 2014 to 2017, Crater and his associates allegedly defrauded investors by soliciting investments in a proprietary digital currency, falsely claiming it was backed by gold and could be exchanged for government-backed fiat currency and other cryptocurrencies. Crater reportedly amassed over $7.5 million from investors, which he used for personal purchases such as a house, cars, artwork, antiques, and jewelry.
The Federal Bureau of Investigations reported in September that cryptocurrency fraud losses in the US reached over $5.6 billion in 2023, marking a 45% increase from the previous year. Investment fraud was the most frequently reported category, with over 69,000 complaints related to cryptocurrency. As noted by Chainalysis on January 15, 2025, illicit onchain activities have diversified as cryptocurrency has become more mainstream, being used to support various threats, including those to national security and consumer protection. In response to the growing threat of crypto scams, the Federal Trade Commission (FTC) of the United States has issued guidelines to help individuals avoid falling victim to such schemes. These guidelines advise caution against scammers who demand payment exclusively in cryptocurrency, promise guaranteed profits or high returns, or solicit cryptocurrency through dating apps. The FTC also warns against language suggesting “zero risk” or promises to “make lots of money.”
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