In a recent development, the Commodity Futures Trading Commission (CFTC) issued a default judgment of $54 million against Michael Ackerman, a resident of Alliance, Ohio, for his involvement in a fraudulent digital asset trading scheme. The judgment, granted by Judge Naomi Reice Buchwald of the U.S. District Court for the Southern District of New York, also imposes a permanent injunction and strict penalties on Ackerman.
As a result of the judgment, Ackerman is now prohibited from participating in any trading activities within markets regulated by the CFTC. Furthermore, he is barred from registering with the regulatory body, effectively banning him from engaging in future trading operations. In addition to these restrictions, Ackerman is required to provide $27 million in restitution to the victims who fell prey to his deceptive scheme.
The case against Ackerman dates back to February 11, 2020, when he was accused of orchestrating an elaborate scam that spanned from August 2017 to December 2019. The complaint alleges that Ackerman solicited funds from individuals and entities under false pretenses, promising to invest the funds in trading digital commodity assets. However, instead of fulfilling this promise, he misappropriated the majority of the funds for personal use or to perpetuate the fraudulent trading scheme.
Over 150 individuals and entities entrusted Ackerman with a total of at least $33 million. Shockingly, less than $10 million of the deposited funds were actually used for trading, while the rest was fraudulently diverted for personal gain or to sustain the deceptive operation.
Christy Goldsmith Romero’s Proposal for Mitigating Risks Associated with Digital Assets
Christy Goldsmith Romero, a commissioner of the CFTC, recently addressed the risks associated with digital assets during a keynote speech at City Week 2023 in London. Romero proposed reducing cryptocurrency anonymity to mitigate these risks and emphasized the importance of collaboration between governments and the industry. She stressed the need for identity verification protocols to minimize the potential for illicit finance within the cryptocurrency market, particularly due to the use of mixers and anonymity-enhancing technology.
This default judgment against Ackerman highlights the CFTC’s commitment to upholding market integrity, national security, and financial stability. By penalizing individuals involved in fraudulent schemes, the CFTC aims to deter similar illicit activities and protect investors from financial harm.