CFTC Recovers $18 Million from Crypto Pyramid Scheme

The U.S. Commodity Futures Trading Commission (CFTC) has managed to recover $18 million in cryptocurrency connected to a fraudulent commodity pool scheme.

The scheme, run by Sam Ikkurty from Oregon, involved a fake “crypto hedge fund” that deceived investors. Ikkurty promised substantial profits but his fund’s value plummeted by nearly 99% within months—a fact he kept hidden.

The CFTC found that Ikkurty’s investments in high-risk digital assets contradicted his claims of expertise, which he had exaggerated. His actual experience was limited to losing his personal Bitcoin in a hack.

U.S. District Court Judge Mary Rowland has ruled that Ikkurty and his associates must pay $209 million, which includes around $84 million for restitution to victims, $37 million in restitution of illicit gains, and $110 million in civil penalties. Additionally, Ikkurty faces over $14 million in criminal contempt fines.

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CFTC Enforcement Director Ian McGinley criticized the scheme, noting that despite being marketed as advanced crypto investments, it was essentially a classic pyramid scheme.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.