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Regulator hits another virtual currency operator with fraud charges

The US derivatives watchdog on Wednesday mentioned it has charged My Big Coin Pay and two males over alleged fraud and misappropriation as a part of an ongoing virtual currency rip-off, the newest in a string of new movements towards cryptocurrencies.

The Commodity Futures Trading Commission, in a observation, mentioned it had charged My Big Coin, Randall Crater of New York and Mark Gillespie of Michigan with “misappropriating over $6 million from customers by, among other things, transferring customer funds into personal bank accounts, and using those funds for personal expenses and the purchase of luxury goods.”

Privately held My Big Coin is a virtual currency operator primarily based in Las Vegas that in line with its website online introduced in December 2013. Representatives for the corporate didn’t right away respond to a request for remark.

The charges, filed on Jan. 16, come amid rising governmental motion all over the world towards virtual currencies, together with bitcoin.

Last week, the CFTC filed fraud charges towards 3 virtual currency operators. Officials in different international locations, together with China and South Korea, have additionally centered cryptocurrencies.

On Wednesday, the CFTC mentioned that MBC’s Web website online, run by way of the 2 males charged, mentioned its currency used to be being traded on a number of currency exchanges and reported a day by day buying and selling worth “when in fact it was not” being traded and “no price existed,” amongst different allegations.

“As customers began to raise questions about their MBC accounts, Defendants attempted to conceal their fraud by issuing additional coins to customers and falsely representing that they had secured a deal with another exchange to trade MBC,” the CFTC mentioned.

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