A popular adage says, “Justice delayed is justice denied.” However, that may not always be the case. Sometimes, justice may be delayed because regulators may not have an idea on how to proceed in a particular case.Speaking of justice, founders of a cryptocurrency-related Ponzi scheme which was masquerading as an Initial Coin Offering (ICO), My Big Coin, have been arrested after a long drawn legislation. The founder, Randall Crater, claimed this cryptocurrency would be backed by $300m in gold reserves. With such reserves in place, one wouldn’t necessarily need investors to contribute additional funds, although some people saw merit in this concept regardless. Based on a recently submitted court document, it quickly became evident there were never any gold coins nor gold assets to speak of, as was reported by news portal, The Merkle.The news portal further stated all individuals have been arrested on seven counts of fraud and unlawful money transfers. The culprits claimed My Big Coin would be backed by 100% gold and was a safer investment than any FDIC-backed venture. Such blatant claims are what attracted the defrauded investors, but most people saw this as a major red flag.Earlier, a district court had upheld the charges that were brought forward by the Commodity Futures Trading Commission (CFTC) against the ICO. In the past, the regulatory body had said, “MBC is a virtual currency and it is undisputed that there is futures trading in virtual currencies (specifically involving Bitcoin).” The Court, upholding the CFTC’s version said that commodities could be extended to a host of specifically enumerated agricultural products as well as ‘all other goods and articles . . . and all services rights and interests . . . in which contracts for future delivery are presently or in the future dealt in.”Liked what you read? Join us on Telegram
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