Washington, D.C. – A federal court has ruled that Michael Ackerman of Alliance, Ohio, must pay over $50 million in connection with a fraudulent digital asset trading scheme. The ruling, issued by Judge Naomi Reice Buchwald of the U.S. District Court for the Southern District of New York on June 13, comes as a result of a default judgment granted by the court.
The Commodity Futures Trading Commission (CFTC) announced the permanent injunction against Ackerman, banning him from trading in any CFTC-regulated markets and registering with the CFTC. The court order also requires Ackerman to pay $27 million in restitution to defrauded victims and a $27 million civil monetary penalty.
According to the CFTC complaint filed on February 11, 2020, Ackerman operated the fraudulent scheme between August 2017 and December 2019. He allegedly solicited and misappropriated funds under the guise of trading digital commodity assets. Over 150 individuals and entities deposited at least $33 million based on Ackerman’s false representations. However, less than $10 million was used for actual trading, while the rest was misappropriated for personal gain or to perpetuate the fraudulent scheme.
This ruling marks a significant step in the CFTC’s enforcement efforts against fraudulent activities in the digital asset trading space. It serves as a reminder of the importance of investor protection and the severe consequences individuals face when engaging in such schemes.
The CFTC’s pursuit of justice in cases like this underscores their commitment to maintaining the integrity of regulated markets and safeguarding the interests of investors.
