‘My Big Coin’ founder ordered to pay $7.6M for crypto fraud scheme

The US District Court for the District of Massachusetts has entered a consent order against Randall Crater of Heathrow, Florida to pay over $7.6 million in restitution to victims of a crypto fraud scheme, the Commodity Futures Trading Commission (CFTC) announced on Feb. 10, 2025.

The order also bans Crater from trading in any CFTC-regulated markets, entering into any transactions involving digital asset commodities and registering with the CFTC.

On Jan. 31, 2023, the US Attorney’s Office for the District of Massachusetts announced that Crater was sentenced to over eight years in prison after being convicted in July 2022 by a federal jury of four counts of wire fraud, three counts of unlawful monetary transactions and one count of operating an unlicensed money-transmitting business.

Related: Appellate court rejects new trial for ‘My Big Coin’ founder

The sealed indictment shows that Crater faced allegations surrounding a purported digital asset company called “My Big Coin Pay, Inc.” From a period beginning in or around 2014 to at least or around 2017, Crater and other individuals executed a scheme to defraud investors by soliciting investments in a proprietary digital currency.

Related: Global crackdowns target crypto scams and AI deepfake fraud

Crater and the other individuals claimed that the cryptocurrency was backed by gold and available for transfer to government-backed fiat currency and other crypto tokens. Over the course of the scheme, Crater obtained over $7.5 million from investors, which he used to buy a house, cars, artwork, antiques and jewelry.

As the Federal Bureau of Investigations shared in September, losses related to cryptocurrency fraud totaled over $5.6 billion in 2023 in the US, a 45% increase in losses from 2022. In 2023, investment fraud was the most reported category, and there were over 69,000 complaints in the overall cryptocurrency nexus.

As Chainalysis detailed on Jan. 15, 2025, illicit onchain activity has become more varied as cryptocurrency has gained mainstream acceptance, being used to fund and facilitate all kinds of threats, from national security to consumer protection.

The Federal Trade Commission (FTC) of the United States has issued general guidelines for avoiding crypto scams. They include watching out for warning signs, including scammers demanding payment only in crypto, promising guaranteed profits or big returns, or soliciting crypto through dating apps. The FTC also recommends watching for language like “zero risk” or “make lots of money.”

Related: Witch hunt: Unmasking the top 10 crypto scammers and their tactics