Randall Crater, the founder of "My Big Coin Pay, Inc.," has been ordered to pay over $7.6 million in restitution for orchestrating a cryptocurrency fraud scheme, the Commodity Futures Trading Commission (CFTC) announced on Feb. 10, 2025. The ruling, issued by the US District Court for the District of Massachusetts, also permanently bans Crater from trading in any CFTC-regulated markets and from engaging in any digital asset transactions.

Crater was convicted in July 2022 on multiple counts of wire fraud, unlawful monetary transactions, and operating an unlicensed money-transmitting business. He was sentenced to more than eight years in prison in January 2023. Prosecutors revealed that from 2014 to 2017, Crater and his associates lured investors into purchasing a fake cryptocurrency, falsely claiming it was backed by gold and could be exchanged for fiat and other digital assets. In reality, Crater funneled over $7.5 million from investors into personal luxuries, including a house, cars, artwork, and jewelry.

The case highlights the growing risk of crypto-related fraud. According to the FBI, cryptocurrency scams cost victims over $5.6 billion in the US in 2023, a 45% increase from the previous year. Chainalysis also reported in January 2025 that illicit crypto activity is evolving, with digital assets now being used in a range of financial crimes, including fraud and national security threats.

The Federal Trade Commission (FTC) warns investors to be cautious of crypto scams that promise guaranteed returns, require payments exclusively in cryptocurrency, or use manipulative tactics on dating apps. Investors should remain skeptical of phrases like “zero risk” and “make lots of money” when evaluating crypto opportunities.