The US derivatives watchdog on Wednesday said it has charged My Big Coin Pay Inc and two men over alleged fraud and misappropriation as part of an ongoing virtual currency scam, the latest in a string of recent actions against cryptocurrencies.
The Commodity Futures Trading Commission, in a statement, said it had charged My Big Coin (MBC), 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 based in Las Vegas that according to its website launched in December 2013. Representatives for the company did not immediately reply to a request for comment. The charges, filed on January 16, come amid growing governmental action around the world against virtual currencies, including bitcoin. Last week, the CFTC filed fraud charges against three virtual currency operators. Officials in other countries, including China and South Korea, have also targeted cryptocurrencies.