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SEC, SDNY and CFTC booked another crypto fraudster for $33 million fraud

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Jayashree Ingle Follow

INDIA

Feb, 18 2020

Feb, 18 2020

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The U.S. Securities and Exchange Commission (SEC) and the US Attorney for the Southern District of New York (SDNY) and Commodity Future Trading Commission (CFTC) have booked Ohio based Michael Ackerman and his two anonymous partners in case of duping more than 100 investors.

 Michael Ackerman allegedly lured some 150 investors by offering them lucrative profits through cryptocurrency-based schemes.

The SEC in its Press release on 11 February, Tuesday reveals that the accused and his partners operated of Q3 Trading Club and Q3 I LP, through which they raised $ 33 million. Michael Ackerman promised the investors that they are developing an algorithm that will generate profits through the trading of cryptocurrencies.

Furthermore, Ackerman falsified the data to mislead the investors that he was generating profit. He also claimed through the duplicate documents that he has a balance of $315 million worth of cryptocurrencies, which was just half a million dollars in reality. He also deceived the investors by using $ 7.5 million dollars from Q3 account for his personal use which was investors’ money.

He misused millions of dollars for purchasing expensive jewelry, luxurious cars, hiring high-level security for and in buying real estate.

Several duped investors are from the Medical profession and they had been exploited out of their ignorance and interest in digital assets.

The SEC has charged Ackerman under injunction and disgorgement as well as civil penalty whereas the SDNY office has filed a case of money laundering against him which can put him behind bars for 20 years.


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Jayashree Ingle

CBW - External Analyst

INDIA

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