- The CFTC has ordered an Oregon man to pay over $209 million in sanctions for running Ponzi schemes
- The agency recovered $18 million in stolen digital assets from the scammer
- The fraud involved misrepresentation of crypto and carbon investments, disguised as cutting-edge opportunities
The Commodity Futures Trading Commission (CFTC) has issued a final judgment against Oregon resident Sam Ikkurty, ordering him to pay over $209 million in sanctions for operating fraudulent Ponzi schemes. The fraud, which falsely marketed crypto and carbon offset investments, led to significant financial harm for victims. The CFTC also recovered $18 million in stolen digital assets that had been taken from a court-appointed receiver during the lawsuit.
Ponzi Scheme and Misrepresentation
Ikkurty falsely presented his investment programs as crypto hedge funds, promising substantial returns. However, the court found that he had instead used the funds to operate “a classic Ponzi scheme,” providing little to no returns. “The defendants portrayed their programs as cutting-edge crypto and carbon investments when in reality they were plain, old-fashioned Ponzi schemes,” said CFTC Enforcement Director Ian McGinley.
Since at least January 2021, Ikkurty and two co-conspirators used a website, YouTube videos, and other means to solicit more than $44 million from at least 170 participants. Instead of investing the pooled funds as stated, the defendants misappropriated the funds by distributing them to newer entrants and kept a healthy portion for themselves.
The defendants also transferred millions of dollars to an off-shore entity that, in turn, may have transferred funds to a foreign cryptocurrency exchange. None of these funds were returned to the pool.
$18 Million Recovered
Alongside the $209 million in monetary sanctions, the CFTC recovered $18 million in digital assets that were stolen during the legal proceedings. These assets were originally held to compensate victims but were taken by Ikkurty, who later fled to India.
The recovery of these assets is seen as a major victory, with McGinley stating, “This is an outstanding result for the CFTC and for the victims.”
As a result of the ruling, the defendants must pay $83.7 million in restitution, $37 million in disgorgement of unlawful gains, and a $111 million civil monetary penalty. The order also orders Ikkurty to pay an outstanding $14 million contempt fine, following the court’s finding he unlawfully transferred digital assets from the Receivership Estate while this lawsuit was pending and violated a court order.
Ikkurty must also repay $884,788 in professional expenses advanced from the Receivership Estate to fund his defense.
