CFTC Halts Ackerman’s Fraud

The Commodity Futures Trading Commission (CFTC) announced on June 28 that Judge Naomi Reice Buchwald of the U.S. District Court for the Southern District of New York had issued a permanent injunction against Ohio resident Michael Ackerman.

Ackerman is prohibited from engaging in any trading activity on CFTC-regulated markets and is not permitted to register with the CFTC.

In addition to these restrictions, Ackerman is ordered to pay $27 million in restitution to the victims of his fraudulent digital asset trading scheme.

In addition, Ackerman must pay a $27 million civil monetary penalty, representing a significant financial consequence for participating in the fraudulent scheme.

Ackerman is accused of operating a deceitful scheme that fraudulently solicited funds from individuals and organizations.

However, it is alleged that he misappropriated most of the funds for personal use or to perpetuate the fraudulent trading scheme.

The case, launched by the CFTC, dates back to February 11, 2020, when Ackerman was accused of orchestrating a complex fraud spanning August 2017 to December 2019.

According to the complaint, Ackerman operated the scheme to solicit funds for trading digital commodity assets but misappropriated the funds.

Reportedly, over 150 individuals and organizations entrusted Ackerman with at least $33 million.

Less than $10 million of the deposited funds were used for trading, while the rest were fraudulently diverted for personal use or to sustain the fraudulent operation.

During her keynote address at City Week 2023 in London, CFTC commissioner Christy Goldsmith Romero proposed reducing the anonymity of cryptocurrencies to mitigate the risks associated with digital assets.

Romero emphasized the significance of government and industry collaboration in addressing the attractiveness of cryptocurrencies for illicit finance.

She emphasized that managing the hazards associated with digital assets is essential for maintaining market integrity, national security, and financial stability.

Romero stresses the need to address the challenge of identity verification to reduce illicit financing risks on the cryptocurrency market, as using mixers and anonymity-enhancing technology introduces significant potential risks.