Based

Bitcoin

Million

Northern

James

In a ruling against a fraudulent cryptocurrency scheme, U.S. District Judge Mary Rowland ordered Sam Ikkurty and his company, Jafia, LLC, to pay over $120 million in fines and restitution. 
The Northern District of Illinois issued this ruling on Monday which backs the charges initiated by the U.S. Commodity Futures Trading Commission (CFTC) in 2022. 
According to <a href="https://www.cftc.gov/PressRoom/PressReleases/8931-24" target="_blank" rel="noreferrer noopener nofollow">CFTC’s post</a>, Ikkurty misled investors with “material misrepresentations,” raising at least $44 million from approximately 170 individuals, assuring that they could receive an annual interest rate of 15% if they invested in Bitcoin or Ethereum. 
However, court documents reveal that Ikkurty’s fund went through a massive loss in value of about 98.99% within a short period. 
Based on the CFTC’s investigation, it was discovered that there was a “Ponzi-like” scheme where new investor funds were used to pay earlier participants. Ikkurty is claimed to have deceived prospective investors during webinars and trade shows by lying about his investment achievements and his experience with digital assets. 
One highly reprehensible aspect of the fraud involved a carbon offset program whereby Ikkurty raised funds by selling products purportedly backed by carbon offset-related digital assets.&nbsp; 
Instead of securing the promised collateral, he diverted over $20 million to cover the losses in other investments, leaving new investors with a significant shortfall. 
The court also ruled that Ikkurty and Jafia, LLC failed to register as commodity pool operators with the CFTC, which was a required regulatory step for their activities. 
In a noteworthy development, Judge Rowland’s order classified the cryptocurrencies OHM and Klima as commodities, potentially expanding the CFTC’s jurisdiction.&nbsp; 
However, legal experts, including James Brady, a partner at Katten Muchin Rosenman LLP, caution that this classification may not preclude future determinations of these assets as securities by other regulatory bodies. 
The CFTC warns that despite the restitution order, full recovery of investor funds may not be possible due to the potential insufficiency of the defendants’ assets. 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 Also Read: <a href="https://www.cryptotimes.io/2024/07/03/lapd-arrests-suspect-involved-in-a-theft-of-bitcoin-mining-computer-worth-579000/" target="_blank" rel="noreferrer noopener">LAPD Arrests Suspect in $579K Bitcoin Mining Equipment Theft</a> 
</blockquote>

Judge Fines Oregon Man with $120 Million in Crypto Fraud Case

The Crypto Times

Các bài viết khác được xuất bản trên 4 thg 7, 2024

Crypto Mogul Justin Sun Offers To Buy Germany’s $2 Billion Bitcoin Stash

DWF Labs Launches $20M Fund to Boost Web3 Projects in Chinese-Speaking Regions

Michael Saylor Cheers BTC Independence Amid Market Crash

Longest Miner Capitulation Since 2022 Signals Potential Bitcoin Rally Ahead

MoonBag Declared Best Presale in July 2024, Outshining Competitors With Unmatched Stability And R...

Bitcoin Bulls Eye $70K: Why the Crucial $58K Support Matters?

Tham gia bản tin miễn phí của chúng tôi để cập nhật tin tức về tiền điện tử hàng ngày!