CFTC Recovers $18M in Crypto from Alleged Ponzi Scheme Led by Oregon Resident
The post CFTC Recovers $18M in Crypto from Alleged Ponzi Scheme Led by Oregon Resident appeared on BitcoinEthereumNews.com.
CFTC recovers $18M crypto Ponzi scheme assets in a major enforcement action involving Oregon resident Sam Ikkurty, who allegedly ran a fraudulent crypto hedge fund. According to a report by The Block, Ikkurty was accused of operating a Ponzi scheme that promised substantial returns from a commodity pool but resulted in a 98.99% loss of value within months. U.S. District Court Judge Mary Rowland ordered Ikkurty and associated entities to pay a total of $209 million in penalties, including $84 million in customer restitution and $110 million in civil penalties. Details of the Ponzi Scheme The U.S. Commodity Futures Trading Commission (CFTC) has been investigating Ikkurty’s operation, which was disguised as a legitimate crypto and carbon investment fund. The scheme targeted investors by promising high returns from a commodity pool, a fund that typically involves investing in futures, options, or other financial derivatives tied to physical assets. Alleged Fraudulent Activity: Ikkurty’s fund was promoted as a hedge fund dealing in crypto and carbon investments. However, instead of generating returns, the value of the fund plummeted by nearly 99%, leading to significant losses for investors. The CFTC has since classified the operation as a classic Ponzi scheme, where earlier investors were paid returns with funds from newer investors, rather than from legitimate profits. Asset Recovery: The CFTC has recovered $18 million in digital assets tied to the scheme. This recovery forms part of the broader enforcement action aimed at compensating defrauded investors. Court-Ordered Penalties In addition to the recovery of assets, U.S. District Court Judge Mary Rowland handed down a comprehensive judgment against Ikkurty and his affiliated entities. The ruling included: $84 Million in Restitution: Ikkurty has been ordered to pay $84 million in restitution to customers who were defrauded by the scheme. This amount is intended to compensate victims for…
Filed under: News - @ September 4, 2024 3:23 am