CFTC Announces Default Judgment Against Mark Gillespie and John Roche in My Big Coin Digital Asset Fraud Scheme

The Commodity Futures Trading Commission (CFTC) today announced the U.S. District Court for the District of Massachusetts entered a final default judgement against Mark Gillespie of Michigan, John Roche of California, My Big Coin Pay, Inc., and My Big Coin, Inc., both of Nevada.

The Commodity Futures Trading Commission (CFTC) today announced that the U.S. District Court for the District of Massachusetts has entered a final default judgment against Mark Gillespie of Michigan, John Roche of California, My Big Coin Pay, Inc., and My Big Coin, Inc., both of Nevada.

The order requires Gillespie, My Big Coin Pay, Inc., My Big Coin, Inc., and Roche to pay, jointly and severally a $19,326,324 civil monetary penalty and $6,442,108 in restitution to defrauded victims in connection with their role in a digital asset fraud scheme. The order also imposes a permanent injunction against the defendants and bans them from trading in any CFTC-regulated markets; entering into any transactions involving commodity interests or digital asset commodities; and registering with the CFTC.

The default order finds that from at least January 2014 through June 2017, Gillespie, My Big Coin Pay, Inc., My Big Coin, Inc., and Roche, together with co-defendant Randall Crater, one of the other co-defendants named in the CFTC’s amended complaint, operated a digital asset scheme in which they fraudulently offered the sale of a fully-functioning virtual currency, My Big Coin (MBC), a commodity in interstate commerce. The CFTC dismissed its enforcement action against named co-defendant Michael Kruger because of his death.

The defendants obtained more than $6 million from at least 28 customers through fraudulent solicitations, including false and misleading claims and omissions about MBC’s value, usage, and trade status, and that MBC was backed by gold. Crater misappropriated virtually all the money solicited from customers, using those misappropriated funds to pay personal expenses and to continue to solicit more funds from customers.

The order resolves the claims against Gillespie, Roche, My Big Coin Pay, Inc., and My Big Coin, Inc., in the CFTC’s enforcement action. The court previously entered a consent order resolving the CFTC’s claims against Crater, who is currently imprisoned for his role in the scheme.

The CFTC cautions that orders requiring repayment of funds to victims may not result in the recovery of any money lost because the wrongdoers may not have sufficient funds or assets.

On January 18, 2022, a grand jury returned an eight-count superseding indictment charging Crater with wire fraud, unlawful monetary transactions, and operating an unlicensed money transmitting business based on the same conduct alleged in the CFTC’s amended complaint. Crater was found guilty of those charges on July 21, 2022, and was sentenced to 100 months in prison and ordered to pay $7,668,317.50 in restitution to defrauded customers and to forfeit $7,668,317.50, which represented the proceeds he received from his violations.

The CFTC's complaint, filed in December 2016, can be viewed on the CFTC's website at: https://www.cftc.gov/press-room/press-releases/2016/cftc_announces_complaint_in_massachusetts_federal_court_charges_individuals_and_companies_in_a_virtual_currency_fraud_scheme.

The court's order, filed on March 10, 2023, is no. 1:14-cv-13983 in the U.S. District Court for the District of Massachusetts.