The Commodity Futures Trading Commission (CFTC) has filed a motion with the New York Southern District Court that seeks heavy penalties against Michael Ackerman, the mastermind of a fraudulent cryptocurrency scheme. According to the motion, the U.S. agency wants the court to order Ackerman to pay $27 million in restitution plus a civil penalty of $81 million.
Additionally, the CFTC wants a default judgment issued against Ackerman after he failed to turn up for the initial motion hearing. The initial motion filing, which the agency filed together with the U.S. Securities and Exchange Commission (SEC), followed allegations that Ackerman had disappeared after raising funds from investors.
According to a report that summarises the case, Ackerman, a former stockbroker, allegedly raised around $33 million from over 150 investors. Ackerman successfully convinced the investors that he would invest a significant part of their funds in the crypto market. The report adds that Ackerman also claimed he would use a “special