The Commodities Futures Trading Commission (CTFC) has announced that it has indicted two US residents who claim to be behind the multi-million dollar cryptocurrency Ponzi scam.
According to press release, The CTFC has brought civil enforcement actions against Sam Ikkurty of Portland, Oregon, and Ravishankar Avadhaman of Aurora, Illinois, who allegedly led a $44 million fraudulent investment scheme centered on digital assets.
Ikkurty’s Jafia LLC was also named defendant in this case.
“According to the indictment, Defendants have demanded more than $44 million from at least 170 participants using their website, YouTube video and other means starting at least January 2021, contracting digital assets, commodities, derivatives, swaps and commodity futures.
The complaint also alleges that the defendants abused participant funds by distributing them to other participants in a manner similar to the Ponzi scam, rather than investing them as represented.”
CTFC also claims that the pair have transferred funds raised through the scheme to an account they control.
“Defendants also remitted millions of dollars to foreign companies, which in turn may have remitted funds to foreign cryptocurrency exchanges. None of these funds have been returned to the pool.”
According to the press release, the regulator is demanding the return of the illegally obtained funds to the accused and damages to the persons enticed by an irreversible prohibition.
“In continuing litigation, the CFTC seeks restitution to fraudulent investors, distribution of undue profits, civil fines, permanent trade and registration bans, and permanent bans for further violations of the Trade in Commodities Act (CEA) and CFTC regulations. “
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