Alleged Crypto Scam: Ohio Man Hit with $54 Million in Penalties by CFTC

Ohio Man Ordered to Pay $54 Million for Alleged Crypto Trading Scheme

In a significant development, a federal court has issued a restitution and penalty order amounting to $54 million against an Ohio resident, Michale Ackerman, who stands accused of orchestrating a fraudulent cryptocurrency trading scheme.

The recent press release from the Commodity Futures Trading Commission (CFTC) sheds light on the case, stating that Ackerman has been directed by the judge to pay $27 million as penalties, in addition to $27 million as damages resulting from his involvement in the crypto scam.

The court order includes a prohibition on Ackerman’s participation in any CFTC-regulated markets, as well as his inability to register with the CFTC. The legal woes for Ackerman commenced in 2020 when the CFTC lodged a complaint against him, alleging his masterminding of a crypto trading scheme spanning from August 2017 to December 2019, during which he allegedly misappropriated millions of dollars from customer funds.

According to the complaint, over 150 individuals and entities entrusted Ackerman with a total of $33 million, but it is claimed that only $10 million of these funds were utilized for trading digital assets. The remaining $23 million was purportedly diverted for Ackerman’s personal use or to sustain the longevity of his fraudulent operation.

The complaint further asserts that Ackerman took measures to conceal his illicit activities, fabricating false account statements, fictitious screenshots of money amount orders, and newsletters containing misrepresented trading returns. These actions were purportedly carried out to maintain the illusion that Ackerman was achieving considerable success in trading crypto assets, promising his clients monthly returns of approximately 15%.

Moreover, in a separate criminal case linked to the aforementioned allegations, Ackerman has been sentenced to a five-year probation period, including one year of home confinement. Additionally, he has been ordered to pay restitution amounting to $31 million as part of his sentencing in the criminal proceedings.

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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