CFTC Seizes $18 Million in Crypto From Alleged Ponzi Scheme Operator
CryptoNewsTerminal Staff03 Sep, 2024
CFTC Seizes $18 Million in Crypto From Alleged Ponzi Scheme Operator
The United States Commodity Futures Trading Commission (CFTC) has seized $18 million worth of cryptocurrency from Sam Ikkurty, the owner of cryptocurrency hedge fund Jafia LLC, as part of an ongoing cryptocurrency Ponzi scheme case. Jafia, an Oregon-based company, allegedly defrauded 170 investors of approximately $44 million using a Ponzi-like scheme that promised annual returns of 18 percent. The CFTC filed a lawsuit against Ikkurty in 2022, and in July, a federal court ordered him to pay $84 million in restitution to defrauded investors. The CFTC's seizure of $18 million in cryptocurrency is a significant development in the case, as it represents a substantial portion of the funds that Ikkurty allegedly defrauded investors of. The seizure also sends a strong message that the CFTC is committed to cracking down on cryptocurrency Ponzi schemes.
