Ponzi

Northern

A federal court has ordered Jafia LLC and its owner, Sam Ikkurty, to pay nearly $84 million to crypto investors after ruling that the firm operated a Ponzi-like scheme.&nbsp;
The judgment, issued by Judge Mary Rowland in the US District Court for the Northern District of Illinois, follows a lawsuit brought by the Commodity Futures Trading Commission (CFTC) in 2022 after the fund’s collapse.
Judge Rowland found that Ikkurty, based in Portland, Oregon, made <a href="https://crypto.news/indian-police-crack-down-on-200000-max-crypto-ponzi-scheme/" data-type="link" data-id="https://crypto.news/indian-police-crack-down-on-200000-max-crypto-ponzi-scheme/" rel="noopener noreferrer nofollow">numerous false claims</a> about his firm’s hedge funds.&nbsp;
These included misleading statements about his trading experience and the promise of high, stable profits. Instead, Ikkurty used funds from new investors to pay earlier investors, a hallmark of a Ponzi scheme.
<h2 class="wp-block-heading" id="the-ponzi-scheme">The Ponzi Scheme</h2>
The court discovered that Ikkurty misappropriated investment funds for personal use without investors’ knowledge. These funds were used for personal use and were reported as <a href="https://crypto.news/disbarred-california-attorney-pleads-guilty-to-crypto-ponzi-scheme/" target="_blank" data-type="link" data-id="https://crypto.news/disbarred-california-attorney-pleads-guilty-to-crypto-ponzi-scheme/" rel="noopener noreferrer nofollow">fraudulent investments</a>, causing significant financial losses to clients.&nbsp;
This non-transparent operation violated <a href="https://crypto.news/crypto-regulation-cftc-congress/" target="_blank" data-type="link" data-id="https://crypto.news/crypto-regulation-cftc-congress/" rel="noopener noreferrer nofollow">CFTC</a> regulations, prompting the hefty fine to compensate defrauded investors and restore some public confidence in the financial system.
Judge Rowland emphasized that fraudulent activities like these only break the law and undermine the integrity of modern financial markets. The $84 million restitution aims to address the financial harm inflicted on investors and reinforce the importance of legal compliance in cryptocurrency trading.

U.S. Court orders Sam Ikkurty to pay $84M for crypto Ponzi scheme

Tabla de contenidos

crypto.news

Otros artículos publicados el 3 jul 2024

BlockDAG’s Layer-1 Technology Draws Discerning Investors with $100M Presale Goal Shows the Door t...

Sydney Sweeney Falls Victim to Hack: X Account Used to Promote Solana Scam Coin

BlackRock Signals Interest in SOL ETF Amidst Solana’s Growing Ecosystem

Fundstrat strategist: THIS is how Bitcoin can still reach $150K in 2024

Why July Could Be a Strong Month for Bitcoin

What Triggered the 13% Decline in Bittensor’s TAO Token?

¡Únete a nuestro boletín gratuito para recibir actualizaciones diarias de criptografía!