Following a judgment from the U.S. District Court for the Southern District of New York, Michael Ackerman, a resident of Alliance, Ohio, is now under a permanent injunction. Announced by the Commodity Futures Trading Commission (CFTC) on June 28th, the injunction bans Ackerman from all trading activities in CFTC-regulated markets.
Further, he is prohibited from registering with the CFTC and is mandated to pay $27 million in restitution to the victims of his fraudulent digital asset trading scheme. The judgment also levies an equivalent civil monetary penalty against him.
Additionally, Ackerman is compelled to pay a $27 million civil monetary penalty, serving as a substantial financial consequence for his involvement in the deceptive scheme.
Ackerman’s fraudulent scheme, alleged to have run from August 2017 to December 2019, is said to have deceived multiple individuals and entities under the pretense of investing in digital commodity assets.
Surprisingly, out of the $33 million collected from over 150 investors, less than a third was used for trading, while the majority of the funds were either used for personal expenses or to sustain the scheme.
In related news, CFTC Commissioner Christy Goldsmith Romero proposed an approach to mitigate the risks related to digital assets during her keynote speech at City Week 2023 in London.
Also Read: CFTC Considers Adding Crypto In Its Risk Management Program
Romero stressed the need for both industry and government cooperation in managing digital asset risks to ensure market integrity, national security, and financial stability.
