The U.S. District Court for the Southern District of New York has issued a default judgment, granting a permanent injunction against Michael Ackerman and subjecting him to a ban from participating in any trading activities within Commodity Futures Trading Commission (CFTC)-regulated markets. Ackerman, a resident of Alliance, Ohio, is also prohibited from registering with the CFTC.
In addition to these restrictions, the judgment mandates that Ackerman provide $27 million in restitution to the victims who suffered from his fraudulent digital asset trading scheme. He is also required to pay a $27 million civil monetary penalty, serving as a significant financial consequence for his involvement in the deceptive scheme.
The case against Ackerman stems from allegations that he operated a fraudulent scheme, soliciting funds from individuals and entities under false pretenses. Rather than using the funds for their intended purpose, he is accused of misappropriating the majority of the funds for personal use or to perpetuate the fraudulent trading scheme.
The CFTC brought the case forward, tracing its origins back to Feb. 11, 2020. The complaint alleges that Ackerman orchestrated the elaborate scam between August 2017 and December 2019, soliciting funds for trading digital commodity assets but ultimately misappropriating the funds.
Reportedly, over 150 individuals and entities entrusted Ackerman with a total of at least $33 million. Shockingly, less than $10 million of the deposited funds were actually used for trading, while the remainder was fraudulently diverted for personal use or to prolong the deceptive operation.
This judgment serves as a significant victory for the CFTC in its ongoing efforts to crack down on fraudulent activities within the digital asset trading space. It sends a clear message that those who engage in deceptive practices will face severe consequences.
Meanwhile, in a keynote speech at City Week 2023 in London, CFTC Commissioner Christy Goldsmith Romero proposed the reduction of cryptocurrency anonymity as a way to mitigate the risks associated with digital assets. Romero highlighted the importance of governments and the industry working together to address the appeal of cryptocurrencies for illicit finance.
She stressed the need to manage the risks of digital assets to uphold market integrity, national security, and financial stability. Specifically, Romero emphasized the challenge of identity verification in the cryptocurrency market, given the use of mixers and anonymity-enhancing technology that introduce significant potential risks.
Overall, these recent actions by the CFTC and Commissioner Romero reflect the increasing efforts by regulatory entities to safeguard investors and maintain the integrity of digital asset markets. As the popularity of cryptocurrencies continues to grow, it is crucial for regulators and industry participants to collaborate in implementing measures that protect against fraudulent activities and illicit finance.
Source link
