Close this search box.

Crypto Hedge Fund Operator Owes $84 Million in CFTC Fraud Case

A federal court ordered Jafia LLC and its owner to pay almost $84 million to crypto investors after finding they ran a Ponzi-like crypto fraud.
Crypto Hedge Fund Operator Owes $84 Million

On July 3rd, Bloomberg Law News reported that a federal court in Illinois had ordered the cryptocurrency hedge fund Jafia LLC and its head, Sam Ikkurty, to pay $84 million to settle fraud charges brought by the U.S. Commodity Futures Trading Commission (CFTC).

Judge Mary Rowland stated that Sam Ikkurty made numerous false claims about Jafia’s cryptocurrency hedge fund operations, including misleading statements about his own experience in cryptocurrency trading.

According to reports, Sam Ikkurty deceived investors by promising high and stable profits from cryptocurrency trades but instead used funds from new investors to pay earlier investors, a fraudulent scheme known as a “Ponzi scheme.”

Additionally, he was accused of using investment funds for personal purposes without notifying investors, resulting in significant financial losses and damaging investor confidence in the cryptocurrency market.

The court found that Jafia LLC operated non-transparently under Sam Ikkurty’s management and violated CFTC regulations. Therefore, the $84 million fine will compensate harmed investors and partially restore public trust in the financial system. Judge Mary Rowland emphasized that such fraudulent behaviors violate the law and undermine the foundation of the modern financial market.


New Post

Read more

Bitcoin ETFs see record inflows in July, signaling strong investor sentiment and driving Bitcoin, Ethereum, and altcoins higher.
Mastercard integrates its API with Alchemy Pay to enhance security for crypto solutions, reducing fraud with advanced machine learning and boosting user protection.
Some firms have proposed business practices that the SEC agrees could exempt them from controversial crypto accounting guidance, according to an SEC source.