According to a CFTC press release, Michael Ackerman represented himself to investors as a professional cryptocurrency trader and promised them a monthly return of more than 15% of their investment. More than 150 people believed him, investing about $33 million in the scheme. Ackerman embezzled two-thirds of that amount for his personal needs.
Ackerman also forged documents to allay investors’ fears. To conceal the fraud, he provided clients with falsified accounting statements, false trading summaries and fictitious screenshots of the amounts of money he allegedly had under his management.
In 2021, Ackerman pleaded guilty to fraud. In February 2022, the man was sentenced to five years of suspended imprisonment, of which one year he must spend under house arrest. In August, a court ordered Ackerman to pay $31 million to injured investors.
On June 13, the U.S. District Court for the Southern District of New York ruled in absentia that Ackerman is barred from trading in any CFTC-regulated markets. The offender must also pay $27 million to compensate victims of the scam and an administrative fine of $27 million for orchestrating the fraudulent scheme.
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“Even after court orders to pay restitution, victims may not receive their lost money because the offenders may not have enough money. The CFTC will continue to protect investors and make sure fraudsters are held accountable,” the CFTC said.
A few months ago, CFTC Commissioner Christy Goldsmith Romero said the agency would not take a lenient approach to regulating the crypto industry, and industry companies should not expect any mercy from the regulator.<br