Further CFTC Enforcement

January 24

The CFTC disclosed today that, on January 16, in a case initially filed under seal, the CFTC sued and froze the assets of the creators of a supposed cryptocurrency called “My Big Coin” who allegedly took $6 million from unwitting buyers and used it to fund shopping sprees and pay off earlier investors.  My Big Coin Pay Inc. — a Nevada corporation whose product, the CFTC noted, sounded similar to Bitcoin — its founder Randall Crater, and salesman Mark Gillespie were accused of fleecing at least 28 people out of $6 million between 2014 and last June.  The government says My Big Coin Pay and its backers claimed their currency could be used wherever MasterCard was accepted, that it was backed by gold and that there was a genuine market for it, but none of that was true. The “currency” wasn’t actually traded on any major exchange and its prices were made up, the stated.  Together with the two cases we recently reported on, this shows that CFTC has become more active in its enforcement efforts.

David Zaslowsky has a degree in computer science and, before going to Yale Law School, was a computer programmer. He is currently the Chairman of the Litigation Department of the firm’s New York office. His practice focuses on international litigation and arbitration. He has been involved in cases in trial and appellate courts across the United States and before arbitral institutions around the world. Many of David’s cases, including some patent cases, have related to technology. Since 2008, David has been included in Chambers for his expertise in international arbitration.