The CFTC emphasized that the case related to the Ikkurty Capital crypto pyramid will increase the attention of American regulators to the cryptocurrency sector. The commission called Ikkurty’s actions “a classic scam” in which criminals profit from the growing interest of investors in cryptocurrencies and green energy. The agency acknowledged that crypto investments open up innovative financial opportunities, but unscrupulous people can take advantage of this.
“Ikkurti misled investors by promising them high returns on cryptocurrency and carbon credits, but in reality left people deceived. The CFTC will continue to fight fraud in the crypto space. By returning money to investors and imposing fines, we protect users and maintain market integrity,” the CFTC said.
Ikkurty was previously charged with running a crypto fraud scheme that promised investors high returns. Within months, the fund’s value had fallen by nearly 99%, causing significant losses for investors. The investigation found that crypto hedge funds managed by Ikkurty were redistributing new clients’ funds to early investors in a Ponzi scheme, with late investors never receiving the promised returns. In 2022, the CFTC also charged Ikkurty Capital with failure to register.
In July, Illinois U.S. District Judge Mary Rowland ordered Ikkurti and related entities to pay a total of $209 million, including $84 million in restitution to affected customers and $110 million in civil penalties.
According to Fortune, the CFTC began investigating the cryptocurrency market maker Jump Trading several months ago. In July, the regulator reached a settlement with the bankrupt FTX exchange, waiving its demand for a $2.7 billion administrative fine.
Source: Bits
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