CFTC Claims My Big Coin Swindled $6 Million in a Crypto Fraud

US judge sides with CFTC saying cryptourrencies meet definition of ‘commodities’ allowed this case for trial and prove fraudulent allegations on My Big Coin Pay Inc.

Randall Crater, the founder of My Big Coin sues by US financial regulatory system since January 2018. Last Wednesday, US Judge sides with CFTC and rules against a motion to dismiss. Commodity Futures Trading Commission (CFTC) files a lawsuit against Crater and Nevada saying that they were luring 28 customers and swindling $6 million. This case presents under violation of CFTC regulations.

CFTC New Crypto Fraud Case- My Big Coin

My Big Coin is said to be backed by gold, a virtual currency one of its kind and promised huge returns to their customers, said CFTC. CFTC adds saying that MBC solicits potential customers using a similar sounding name to the virtual currency “Bitcoin”. They were also soliciting customers to invest in MBC stocks.

The judge says that MBC meets the definition of ‘commodity’ under the Commodity Exchange Act. This was enough at the pleading stage for the case to move to trial. United States district court judge, Rya W. Zobel of the Massachusetts District Court has hence rules against the motion to dismiss allowing the case to go to trial.

CFTC will get a chance to prove that they have the jurisdictions. Crater’s lawyers will defend against these alleging fraud claims. The defendants will get a chance to clear these allegations. Crater’s Lawyer, Katherine Cooper says that they found disappointment as the case proceeds to trial.

She is also looking forward to CFTC’s ability to prove these allegations and relativeness of bitcoin and my big coin. And therefore the CFTC’s jurisdiction. You can find more proof and claims by CFTC hereSo the question we are all left with is, “Are Cryptocurrencies ‘commodities’?”

What do you think? Should CFTC have a say in it? Do Cryptos come under commodity definition of CFTC according to you? Let’s Discuss! 

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Kerin is active blogger and guest writer at Coinpedia. She loves writing new updates, price fluctuations and possible insights. Kerin frequently search, review and share her views among large audience via crypto media firms.

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