On Thursday the Commodity Futures Trading Commission (CFTC) reportedly charged two U.S Residents that have been accused of embezzling nearly $44 million from at least 170 investors through frauds “equivalent to the Ponzi scheme” through websites and YouTube videos.
The CFTC statement acknowledgment, identified Sam Ikkurt from Portland, Oregon, and Ravishankar, from Aurora, Illinois, and that the judge has already issued a restraining order for the two and thus ordered the freezing of assets owned by the two, keeping records and appointing a temporary receiver for the assets.
Although most people are well aware of crypto mining, only a few understand what this means. While the term “mining” is deliberately used to lure investors into a false sense of security because they have heard of making money in crypto mining. The post says;
At the Rose City Income Fund, we focus on providing returns to our investors. We generate revenue by operating digital toll booths. These toll booths charge a fee whether the market rises or falls. We use market-neutral strategies to generate reliable returns. One of our portfolio holdings is Synthetix, which we bought last year for $0.5. We had another chance to add more in March of this year.
The alleged complaint suggests that instead of investing in digital assets and making claims of “buying, holding and trading of digital assets, commodities, derivatives, swaps and commodity futures contracts”.
However, instead of investing the funds as they used to advertise and promise like investing the funds to earn passive income through stacking or well-managed trading systems, they rather misused the funds “like a Ponzi scheme” by distributing the received money to other partners.
There are also records relating to the transfer of consumer funds to the accounts owned and maintained by the defendant’s own accounts.
The CFTC said the defendants later used to transfer funds to accounts for their own gain, which includes transferring millions of dollars to an off-shore company. A case has been registered against them for operating an illegal commodity pool and not registering as a commodity pool operator thus failing on the conditions.
Read also: ECB president says Crypto has no value
Commodities regulatory body charges 2 men: crypto scam
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