Oregon Man To Pay Over $209 Million For Supposed Crypto Ponzi Scheme
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An Oregon man by the name of Sam Ikkurty will have to cough up over $209 million to the Commodity Futures Trading Commission (CFTC) after running a multi-million dollar crypto ponzi scheme, according to a Tuesday press release.
According to the CFTC, Ikkurty ran illicit “crypto hedge funds” supported by the funds of participants he found at webinars and trade shows where he discussed his own positive experience with digital assets as a whole.
Ikkurty further fraudulently claimed that investors would receive “a steady distribution of 15% income per year of supposed ‘net profits’” through crypto investments.
“Ikkurty also gained participants’ confidence by repeatedly telling stories of his personal success investing in and trading digital assets,” a July press release from the CFTC stated. “Few of Ikkurty’s statements were true.”
In reality, Ikkurty’s experience with crypto “consisted solely of losing his personal Bitcoins to a hack.”
Additionally, Ikkurty’s crypto venture fell by over 98.99% in a mere matter of months – a fact he allegedly did not disclose to investors – and he openly “misstated his fund’s historical performance.”
“The defendants portrayed their programs as cutting-edge crypto and carbon investments when in reality they were plain, old-fashioned Ponzi schemes,” said Director of Enforcement Ian McGinley.
After the CFTC filed the lawsuit against Ikkurty following the collapse of his fund in 2022, millions worth of crypto recovered by the federal agency was stolen in an eyebrow-raising hack.
Ikkurty then fled to India and
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