Former New York Stock Exchange (NYSE) broker has been directed by a federal court to pay a staggering $54 million in damages and penalties for orchestrating a fraudulent cryptocurrency trading scheme.
The U.S. Commodity Futures Trading Commission (CFTC) has announced that Michael Ackerman, an Ohio resident, has been banned from participating in any markets under the watchdog’s supervision as per the ruling issued by a judge at the Southern District of New York court.
The CFTC’s case against Ackerman, who was initially charged in 2020, involves accusations of defrauding approximately 150 investors and raising a substantial sum of $33 million by making grandiose promises of “extraordinary profits.” Initially maintaining his innocence, Ackerman ultimately altered his plea in September 2021, prompting the conclusion of the enforcement proceedings against him, as stated in the CFTC’s official announcement.
According to the notice released by the regulatory body, the final court order, dated June 13, encompasses several key provisions. Ackerman is compelled to disburse $27 million in restitution to the victims he defrauded, aiming to compensate them for their losses. Additionally, he has been slapped with a hefty $27 million civil monetary penalty, further highlighting the severity of his involvement in the fraudulent digital asset trading scheme.
This landmark ruling sends a strong message to those contemplating engaging in deceptive practices within the cryptocurrency market. The CFTC, as the overseer of commodity futures and options markets in the United States, remains committed to safeguarding investors and maintaining the integrity of the financial system. By holding Ackerman accountable for his illicit actions, the CFTC aims to instill confidence in the market and deter potential wrongdoers from exploiting unsuspecting individuals.
The repercussions of Ackerman’s misconduct are not limited to financial penalties alone. With his ban from participating in markets regulated by the CFTC, his ability to operate in the industry is effectively curtailed. This enforcement action serves as a stern reminder that fraudulent activities will not go unpunished, emphasizing the CFTC’s dedication to preserving fair and transparent markets for the benefit of all participants.
As the financial landscape evolves and digital assets continue to gain prominence, regulatory bodies like the CFTC remain vigilant in their pursuit of justice. The outcome of this case against Michael Ackerman reaffirms the commitment of law enforcement agencies to combat fraud and protect investors, thereby fostering an environment of trust and stability in the ever-expanding realm of cryptocurrency trading.
