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.
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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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