The Commodity Futures Trading Commission (CFTC) has busted another fraudulent digital asset investment scheme. The agency has filed an enforcement action against two individuals and their entities for fraudulently soliciting at least $44 million.

According to Friday’s announcement, the individuals are Sam Ikkurty, Ravishankar Avadhanam and Ikkurty-owned Jafia LLC. In addition,the complaint charged three funds owned and operated by the primary defendants: Ikkurty Capital (Rose City Income Fund), Rose City Income Fund II LP and Seneca Ventures.

The primary charges against the defendants were for soliciting investors with false promises of income funds invested in digital assets and other instruments. Moreover, they are charged for operating in an illegal commodity pool as they failed to register with the market regulator.

The name of the three funds came as the defendants were in possession of them without any legitimate interest in them.

A Large Scale Digital Operation

According to the  CFTC  complaint, the defendants targeted investors since at least January 2021 through multiple channels. They ran a website, ran YouTube advertisements and a few other means.

They solicited at least $44 million from around 170 investors with the promises of purchasing, holding and trading digital assets, commodities, derivatives,  swaps  and commodity futures contracts. They even ran a Ponzi-styled operation by misappropriating participants' funds for others, without making any pooled investment.

Further, the defendants allegedly transferred 'millions of dollars' to an offshore entity and then moved them to a foreign cryptocurrency exchange. Additionally, the complaint highlighted that none of these funds were returned to the pool.

The CFTC is now seeking restitution to the defrauded investors and disgorgement of ill-gotten gains. Furthermore, it wants civil monetary penalties and permanent trading and registration bans, along with permanent injunctions.

The US court already ordered that the assets of the defendants be frozen, along with instructions to preserve records and the appointment of a temporary receiver.

The Commodity Futures Trading Commission (CFTC) has busted another fraudulent digital asset investment scheme. The agency has filed an enforcement action against two individuals and their entities for fraudulently soliciting at least $44 million.

According to Friday’s announcement, the individuals are Sam Ikkurty, Ravishankar Avadhanam and Ikkurty-owned Jafia LLC. In addition,the complaint charged three funds owned and operated by the primary defendants: Ikkurty Capital (Rose City Income Fund), Rose City Income Fund II LP and Seneca Ventures.

The primary charges against the defendants were for soliciting investors with false promises of income funds invested in digital assets and other instruments. Moreover, they are charged for operating in an illegal commodity pool as they failed to register with the market regulator.

The name of the three funds came as the defendants were in possession of them without any legitimate interest in them.

A Large Scale Digital Operation

According to the  CFTC  complaint, the defendants targeted investors since at least January 2021 through multiple channels. They ran a website, ran YouTube advertisements and a few other means.

They solicited at least $44 million from around 170 investors with the promises of purchasing, holding and trading digital assets, commodities, derivatives,  swaps  and commodity futures contracts. They even ran a Ponzi-styled operation by misappropriating participants' funds for others, without making any pooled investment.

Further, the defendants allegedly transferred 'millions of dollars' to an offshore entity and then moved them to a foreign cryptocurrency exchange. Additionally, the complaint highlighted that none of these funds were returned to the pool.

The CFTC is now seeking restitution to the defrauded investors and disgorgement of ill-gotten gains. Furthermore, it wants civil monetary penalties and permanent trading and registration bans, along with permanent injunctions.

The US court already ordered that the assets of the defendants be frozen, along with instructions to preserve records and the appointment of a temporary receiver.