Introduction
The Commodity Futures Trading Commission (CFTC) has issued a default judgment against Michael Ackerman, a resident of Alliance, Ohio, for operating a fraudulent digital asset trading scheme. The judgment, which was granted by Judge Naomi Reice Buchwald of the U.S. District Court for the Southern District of New York, orders Ackerman to pay $54 million in restitution to his victims and a $27 million civil monetary penalty.
The Scheme
Ackerman’s scheme began in August 2017. He represented himself as a successful digital asset trader and solicited funds from individuals and entities to invest in his trading strategies. Ackerman told his victims that he would use their funds to trade digital assets on their behalf, and that they could expect to earn significant returns.
In reality, Ackerman did not use the funds to trade digital assets. Instead, he misappropriated the funds for his own personal use. He used the money to pay for his personal expenses, including travel, entertainment, and gifts. He also used the money to invest in other businesses.
The Victims
Over 150 individuals and entities entrusted Ackerman with a total of at least $33 million. Many of Ackerman’s victims were elderly or retired, and they had invested their life savings in his scheme.
The CFTC Investigation
The CFTC began investigating Ackerman’s scheme in 2019. In February 2020, the CFTC filed a complaint against Ackerman alleging that he had engaged in fraud and manipulation. Ackerman did not respond to the complaint, and the court entered a default judgment against him.
The Default Judgment
The default judgment orders Ackerman to pay $27 million in restitution to his victims and a $27 million civil monetary penalty. The judgment also prohibits Ackerman from engaging in any trading activities within markets regulated by the CFTC and bars him from registering with the regulatory body.
Conclusion
The CFTC’s action against Ackerman is a reminder of the risks associated with investing in digital assets. Investors should be wary of anyone who promises high returns with little or no risk. They should also do their research before investing in any digital asset trading scheme.
Additional Information
- The CFTC’s jurisdiction over digital assets is limited. The CFTC only regulates digital assets that are used in derivatives contracts or that are involved in fraud or manipulation.
- The CFTC has issued a number of warnings about the risks of investing in digital assets. These warnings can be found on the CFTC’s website.
- Investors who have been victims of fraud or manipulation involving digital assets should contact the CFTC. The CFTC can help investors recover their losses.
About the CFTC
The Commodity Futures Trading Commission (CFTC) is an independent agency of the United States government responsible for regulating the futures, swaps, and options markets. The CFTC’s mission is to protect market participants and the public from fraud, manipulation, and systemic risk in the derivatives markets.
