CFTC Recovers $18 Million from Crypto Pyramid Scheme
05.09.2024 10:30 1min. read Alexander Stefanov
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.
CFTC Enforcement Director Ian McGinley criticized the scheme, noting that despite being marketed as advanced crypto investments, it was essentially a classic pyramid scheme.
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