RATE Group | Federal Judge Rules Cryptocurrency MBC Is a Commodity
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Federal Judge Rules Cryptocurrency MBC Is a Commodity

28 Sep Federal Judge Rules Cryptocurrency MBC Is a Commodity

Posted at 00:48h in Cryptocurrency News by

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In a landmark case for the cryptocurrency industry, a federal judge has ruled that a cryptocurrency caught in the midst of a lawsuit is a commodity, court documents reveal.

U.S. District Judge for Massachusetts Rya Zobel has decided that the suit’s prosecuting party — the Commodity Futures Trading Commission (CFTC) — can proceed with its case against My Big Coin Pay Inc. as its cryptocurrency My Big Coin (MBC) does not fall into the category of a security.

My Big Coin was founded in December of 2013. Allegedly based in Wyoming, the company offers its own digital wallet to store cryptocurrencies and a digital exchange to trade them. My Big Coin began selling its own currency — MBC — through an initial coin offering (ICO) and made approximately $6 million from 28 separate investors by promising 1 percent interest per year to investors that kept their wallets open.

The CFTC claims that the ICO has all the same behavior and qualities of a Ponzi scheme. They allege that the…

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