Welcome DT News

  • CONTACT
  • ABOUT US
Deythere
  • Home
  • News
    image 241
    CryptoMarketNewsSponsored Article

    Shiba Inu and Pepe See Double-Digit Volume Drops While MoonBull Becomes the Next Big Crypto Presale to Watch

    What draws traders to a new project while legendary meme coins face…

    By
    Benedikt Krüger
    August 8, 2025
    Trump Taps Pro-Bitcoin Economist Stephen Miran for Key Federal Reserve Role
    NewsCryptoMarket
    Trump Taps Pro-Bitcoin Economist Stephen Miran for Key Federal Reserve Role
    August 8, 2025
    UK’s Union Jack Oil Turns West Newton Gas into Bitcoin Mining Powerhouse
    NewsBitcoinCryptoMining
    UK’s Union Jack Oil Turns West Newton Gas into Bitcoin Mining Powerhouse
    August 8, 2025
    Vitalik Sounds the Alarm: Could Ethereum’s $10B Treasury Boom Trigger the Next Big Crash?
    NewsCryptoEthereum
    Vitalik Sounds the Alarm: Could Ethereum’s $10B Treasury Boom Trigger the Next Big Crash?
    August 8, 2025
    image 238
    CryptoMarketNewsSponsored Article
    Fill Your Wallets Before It Moons: MoonBull Is Gearing Up to Be the 1000x Crypto – Brett and Notcoin Stay Bullish
    August 8, 2025
  • Cryptocurrency
    image 241
    Shiba Inu and Pepe See Double-Digit Volume Drops While MoonBull Becomes the Next Big Crypto Presale to Watch
    6 Min Read
    Trump Taps Pro-Bitcoin Economist Stephen Miran for Key Federal Reserve Role
    Trump Taps Pro-Bitcoin Economist Stephen Miran for Key Federal Reserve Role
    6 Min Read
    UK’s Union Jack Oil Turns West Newton Gas into Bitcoin Mining Powerhouse
    UK’s Union Jack Oil Turns West Newton Gas into Bitcoin Mining Powerhouse
    6 Min Read
    Vitalik Sounds the Alarm: Could Ethereum’s $10B Treasury Boom Trigger the Next Big Crash?
    Vitalik Sounds the Alarm: Could Ethereum’s $10B Treasury Boom Trigger the Next Big Crash?
    6 Min Read
    image 238
    Fill Your Wallets Before It Moons: MoonBull Is Gearing Up to Be the 1000x Crypto – Brett and Notcoin Stay Bullish
    9 Min Read
    NFT Market Comeback: $530M in July Trades Flip DeFi Activity
    NFT Market Comeback: $530M in July Trades Flip DeFi Activity
    8 Min Read
    Previous Next
  • Pages
    • Contact Us
    • Customize Interests
    • My Bookmarks
Reading: US Court Slaps $209M Fine on Crypto Ponzi Scheme Operators
Share

[ccpw id=”7831″]

DeythereDeythere
Font ResizerAa
  • Home
  • Crypto
  • Market
  • News
  • Blockchain
  • Contact
Search
  • Home
  • News
  • Cryptocurrency
  • Pages
    • Contact Us
    • Customize Interests
    • My Bookmarks
Have an existing account? Sign In
Follow US
© DT News. All Rights Reserved.
Deythere > News > News > US Court Slaps $209M Fine on Crypto Ponzi Scheme Operators
News

US Court Slaps $209M Fine on Crypto Ponzi Scheme Operators

US Court Slaps $209M Fine on Crypto Ponzi Scheme Operators
US Court Slaps $209M Fine on Crypto Ponzi Scheme Operators
Eoghan MacCraith
Last updated: September 5, 2024 1:12 pm
By
Eoghan MacCraith
Published September 5, 2024
5 Min Read
Share

The US District Court for the Northern District of Illinois has imposed a staggering $209 million judgement against an Oregon man and his companies for running a sophisticated Ponzi scheme masquerading as crypto and carbon investment. This legal development is another reason to show renewed vigilance concerning fraudulent cryptocurrency enterprises. The court-ordered restitution served as a serious deterrent to prospective fraudsters.

Contents
How the Ponzi Scheme Fooled InvestorsRegulatory Action and Investor SafeguardsConclusion: Crypto Scams and the Fight Against Ponzi Schemes

US Court Slaps $209M Fine on Crypto Ponzi Scheme Operators

The perpetrator of this scam, Sam Ikkurty, along with his host of companies, was found guilty of fraudulently offering investments in a scheme that had dressed itself up with the trappings of state-of-the-art crypto and carbon trading platforms to dupe many investors. The defendants here marketed their programs as pioneering crypto and carbon investments when, in truth, they were nothing more than garden-variety Ponzi schemes,” said Ian McGinley, the CFTC Director of Enforcement.

How the Ponzi Scheme Fooled Investors

The entities Ikkurty operated were Jafia LLC, Ikkurty Capital LLC, and Rose City Income Fund, which promised investors lucrative returns through crypto and carbon investments. Instead of investing in reputable ventures, the money from these investors was channelled to earlier investors as a classic Ponzi scheme. Several red flags tumbled the scheme, and with the attention of regulators, it landed under investigation by the CFTC.

According to the court documents, Ikkurty misappropriated millions, but it didn’t stop there; he also tried to cover up the misappropriation of those millions by transferring some of the digital assets during the litigation. The court brought a damning close to the case: He was ordered to pay $83.7 million in restitution to defrauded investors, was to disgorge $36.9 million in illegal profits, and pay a heavy $110.9 million civil penalty.

Not all was lost, however. The CFTC also recovered more than $18 million in stolen digital assets. These will be restituted to the victims. McGinley underlined the importance of this recovery: “CFTC staff not only shut down the defendants’ fraudulent schemes and obtained a money judgement of over $200 million, but they also recovered more than $18 million in stolen digital assets that may otherwise have been lost forever.”.

US Court Slaps $209M Fine on Crypto Ponzi Scheme Operators

Regulatory Action and Investor Safeguards

This case has acted as an eye-opener for both regulators and investors. The growth of fraudulent Ponzi schemes in cryptocurrencies underlines an increasing need for safeguards and investor education. This ruling by the court underpins the role of regulatory bodies in locating and destroying fraudulent schemes. Through financial flows and the tracking of digital assets, agencies are stepping up efforts to protect investors and ensure market integrity. In the case of fraud activities by Ikkurty, the timely regulatory action recovered not only the stolen money but also imposed penalties in adequate amounts that would deter fraudulent activities in the future.

Conclusion: Crypto Scams and the Fight Against Ponzi Schemes

The penalty of $209 million levied by the U.S. court against Sam Ikkurty and other conspirators is a strong precedent in the fight against fraud associated with cryptocurrency. These fraudsters disguised a Ponzi scheme as an innovative crypto and carbon trading program, not without deceiving investors and leveraging the allure of the digital asset market. However, the court’s judgement and the success of the CFTC in recovering millions in ill-gotten gain brought some measure of relief to the victims.

This case was a good reminder of such non-stop crypto market development risks. Investors must be cautious, and regulators must further crack down on fraudulent schemes to help discern legitimate investment opportunities opened up by this ever-widening world of digital assets. Learn more about crypto scams from Deythere to help you stay vigilant. 

 

Advertising

For advertising inquiries, please email . [email protected] or Telegram

Bitcoin Hits $100K Briefly, Faces Drop Below $90K on Trade Fears

DeFi Projects Burn 12,233 ETH in a Week! This Altcoin Takes the Lead

ADA Price Outlook: Cardano Bounces Back Amid Trade War Relief – Is $0.30 Still on the Horizon?

Didn’t Grab Brett in Time? MoonBull Is the Top Meme Coin to Watch for Your Next Moonshot

Fintech’s Role in Election Polling? PayPal, Coinbase, and Cash App Could Offer Data Collection Solutions

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Share This Article
Facebook Email Copy Link Print
ByEoghan MacCraith
Eoghan MacCraith brings 9 years of experience in the cryptocurrency and blockchain sectors, where he has established himself as a thought leader. With a background in financial technology, Eoghan transitioned into the crypto world early on, recognizing the vast potential for blockchain to revolutionize financial systems. His work has spanned across various global projects, from developing robust blockchain networks to advising startups on implementing secure and scalable solutions. Eoghan's contributions to DT NEWS are centered around providing expert insights into market trends, regulatory developments, and the future of digital currencies, offering readers a comprehensive understanding of the industry's dynamics.
Previous Article Robinhood Settles $3.9M Fine with California DOJ Over Crypto Withdrawal Restrictions Robinhood Settles $3.9M Fine with California DOJ Over Crypto Withdrawal Restrictions
Next Article CFTC Reaches Settlement With Uniswap Labs on Leveraged Crypto Trading Dispute CFTC Reaches Settlement With Uniswap Labs on Leveraged Crypto Trading Dispute
Leave a Comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Follow US

Find US on Socials
FacebookLike
XFollow
YoutubeSubscribe
TelegramFollow
Subscribe to our newslettern

Get Newest Articles Instantly!

- Advertisement -
Ad image
Popular News
crypto 2024
Crypto Derivatives Market Heats Up as Innovative Products Emerge
crypto approval
Blockchain Revolutionizes Energy Markets with Decentralized Trading Platforms
crypto news
Cutting-Edge Mining Technologies Drive Efficiency in Cryptocurrency Production

Follow Us on Socials

We use social media to react to breaking news, update supporters and share information

Twitter Youtube Telegram Linkedin
Deythere

DT News influence 20 million users and is the number one business blockchain and crypto news network on the planet.

Subscribe to our newsletter

You can be the first to find out the latest news and tips about trading, markets...

Menu

  • Home
  • News
  • Sitemap
© DT News. All Rights Reserved.
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?

  • English