A federal judge has ordered a man and his company in Oregon to pay over $83 million in restitution to victims of a fraudulent digital asset investment scheme, which is considered a “classic Ponzi scheme.” U.S. District Court Judge Mary Rowland ordered a default judgment against Sam Ikkurty and several of his companies, including Jafia LLC and Ikkury Capital LLC. The court found that the defendants violated the law by engaging in fraud and operating as unregistered commodity pool operators. According to the court’s findings, Ikkurty recruited investors by promising an annual return on investment of 15% in digital assets such as Bitcoin and Ethereum. However, the judge concluded that Ikkurty made numerous false statements about his investment experience and fund performance, similar to a Ponzi scheme. The court also found that the defendants misappropriated over $20 million through a fraudulent carbon offset program. In addition to the fraudulent claims, the defendants were found to have failed to register with the Commodity Futures Trading Commission as required. The court’s order also reaffirmed the CFTC’s authority over certain non-Bitcoin cryptocurrencies. The CFTC plans to seek additional injunctive relief and civil penalties. The CFTC has been taking an increasing interest in pyramid schemes in the forex market as well, securing a significant victory in April when a California individual and his company were ordered to pay $9 million in a forex fraud case.
