CFTC Charges Oregon and Illinois Residents and Florida Company in $44 Million Misappropriation

On Thursday, the Commodity Futures Trading Commission (CFTC) announced that it filed a civil enforcement action against an Oregon and Illinois resident, as well as a Florida company for fraudulently soliciting at least $44 million in digital asset investments.

The CFTC specifically named Sam Ikkurty a/k/a Sreenivas I Rao (OR), Ravishankar Avadhanam (IL), and Jafia LLC, a Florida-based company Ikkurty also owns in its action.

In the complaint, the defendants are charged with operating an illegal commodity pool and failing to register as a Commodity Pool Operator. Additionally, the complaint further charges three funds owned and operated by the defendants as “relief defendants” in possession of funds to which they have no legitimate interest – Ikkurty Capital LLC d/b/a Rose City Income Fund, Rose City Income Fund II LP (Rose City), and Seneca Ventures LLC.

According to the CFTC, the scheme dates back to as early as January 2021, where the defendants allegedly used YouTube videos and websites to obtain more than $44 million from over 170 participants “to purchase, hold, and trade digital assets, commodities, derivatives, swaps and commodity futures contracts.”

Rather than investing the pooled participant funds as represented, the complaint states that the defendants, instead, misappropriated those funds by distributing them to other participants – similar to a Ponzi scheme. The defendants are also believed to have transferred part of the funds to off-shore accounts under their control and for their benefit.

CFTC issues order to freeze assets

The commission has secured an ex parte order to freeze the assets under the control of the defendants and has appointed a temporary receiver to preserve records.

A hearing on the case will take place on May 25, 2022. The CFTC has issued several customer protection Fraud Advisories and Articles that provide the warning signs of fraud, including one to inform the public of possible risks associated with investing or speculating in virtual currencies or recently launched Bitcoin futures and options.

The CFTC hopes to refund all those victimized by the scheme. It is also seeking other punishments, including fines, and permanent bans.

U.S. agencies are looking deeper into enforcement

With this lawsuit, the CFTC has continued to show its stance in protecting consumers and investors from bad actors, joining other federal agencies in helping to better regulate the cryptocurrency space.

President Biden’s Executive Order has given US agencies more impetus to research the crypto industry in order to better protect US citizens. Indeed, the SEC has already promised to impose strict oversight measures over the crypto sector.

The Consumer Financial Protection Bureau (CFPB) has also announced that it intends on issuing the Consumer Financial Protection Circulars for the regulators to enforce federal consumer laws. The recent crypto market crash has also increased interest from lawmakers and regulators in the country.

What do you think about this subject? Write to us and tell us!.

The post CFTC Charges Oregon and Illinois Residents and Florida Company in $44 Million Misappropriation appeared first on BeInCrypto.

Earning Passive Income With Crypto

Related Posts

Status (SNT) Creates Double Bottom Pattern Inside Long-Term Support Area

Status (SNT) returned to its May lows on June 14 and created a double bottom pattern that was combined with a bullish divergence in the RSI. SNT…

The New Eminem and Snoop Dogg Music Video Showcases Bored Ape Avatars

The prominent rap stars Eminem and Snoop Dogg released a new music video that showcases the Bored Ape Yacht Club (BAYC) non-fungible token (NFT) collection. The duo’s…

Crypto Can Save the Fashion Industry Despite Being Bruised and Battered –  Here’s Why

Luxury fashion brands are looking beyond the trauma that the crypto industry is currently facing to create “digital twins” for their designer products. Luxury giants LVMH, Prada,…

2022 Most Significant Bear Market yet, Says Glassnode

The bear market of 2022 has proven to be the most significant yet for cryptocurrencies, according to a recent report from Glassnode. While equities and bonds have…

Reports Claim Russia Defaulted on Foreign Debt for the First Time in a Century, Kremlin Disagrees and Says It Paid

According to reports, the Russian Federation has defaulted on its foreign debt for the first time since 1918. Bondholders told the press that they had not received…

Stacks (STX) Breaks out From 221-Day Descending Wedge

Stacks (STX) has broken out from a bullish long-term pattern after the RSI generated significant bullish divergence. STX has been falling since reaching an all-time high price…