The Commodities Futures Buying and selling Fee (CTFC) is saying prices in opposition to two US residents alleging that they have been behind a multi-million-dollar crypto Ponzi scheme.
Based on a press launch, the CTFC has filed civil enforcement motion in opposition to Sam Ikkurty of Portland, Oregon and Ravishankar Avadhaman of Aurora, Illinois for supposedly masterminding a $44 million fraudulent funding scheme centered round digital belongings.
Ikkurty’s Jafia LLC was additionally named as defendant within the case.
“The grievance alleges that since at the least January 2021, the defendants have used a web site, YouTube movies, and different means to solicit greater than $44 million from at the least 170 contributors to buy, maintain and commerce digital belongings, commodities, derivatives, swaps and commodity futures contracts.
The grievance additional alleges that as an alternative of investing the pooled participant funds as represented, the defendants misappropriated participant funds by distributing them to different contributors, in a way akin to a Ponzi scheme.”
The CTFC additionally claims that the pair moved the funds collected by means of the scheme to accounts that they management.
“The defendants additionally transferred tens of millions of {dollars} to an offshore entity that, in flip, could have transferred funds to a overseas cryptocurrency alternate. None of those funds have been returned to the pool.”
The regulatory company is in search of damages for individuals who have been conned, the return of the illegally-obtained funds and irreversible bans for the defendants, in line with the press launch.
“In its persevering with litigation, the CFTC seeks restitution to defrauded traders, disgorgement of ill-gotten features, civil financial penalties, everlasting buying and selling and registration bans, and a everlasting injunction in opposition to additional violations of the Commodity Trade Act (CEA) and CFTC laws.”
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