US Court Orders Operator of Digital Asset Trading Scam to Pay $54 Million – Michael Ackerman, the alleged operator of a fraudulent digital asset trading scheme, has been prohibited from engaging in trading activities in CFTC-regulated markets or becoming registered with the Commodity Futures Trading Commission (CFTC), as per an injunction order issued by the CFTC.
Additionally, Ackerman has been ordered to pay $27 million in restitution to victims who were defrauded, along with a civil monetary penalty of $27 million. Recently, the CFTC announced that a default judgment has been made, granting a permanent injunction against Michael Ackerman, the individual behind the aforementioned fraudulent digital asset trading scheme.
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This judgment, issued by the U.S. District Court Judge Naomi Reice Buchwald, restricts Ackerman from participating in regulated markets and registering with the CFTC.The statement also revealed that Ackerman, who was sentenced to five years of probation with a year of home confinement in Feb. 2022, will also be required to “pay $27 million in restitution to defrauded victims.”
Ackerman was further hit with a civil monetary penalty of $27 million for operating the fraudulent scheme. As per the CFTC statement, the case against Ackerman stems from his alleged role in operating a fraudulent scheme which “solicited and misappropriated funds to purportedly trade digital commodity assets.” Although he managed to successfully extract an estimated $33 million from some 150 individuals and entities, Ackerman only used $10 million to trade.
According to the Commission, Ackerman is thought to have used the remaining funds for “personal use or to prolong the fraudulent trading scheme.” The CFTC also accused Ackerman of lying to his victims about the monthly returns he was generating via the fraudulent trading scheme. In order to hide the fraud, Ackerman allegedly provided his customers with “false accounting statements, newsletters containing false trading returns, and fictitious screenshots of the amount of money under management.”
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Meanwhile, the CFTC also used the announcement to warn victims of fraudulent digital asset scams that injunction orders may not lead to the recovery of funds. “The CFTC cautions that orders requiring payment of funds to victims may not result in the recovery of any money lost because wrongdoers may not have sufficient funds or assets. The CFTC will continue to fight vigorously for the protection of customers and to ensure the wrongdoers are held accountable,” the CFTC said.
