Fraudulent Ponzi scam accused of taking $18 million from investors
By way of a US District Court in Illinois, the CFTC has indicted two individuals on charges of running a multimillion-dollar Ponzi scam.
Two people and a business have been charged with running an unlawful community pool and soliciting fraudulently $44 million through an “income fund investing in digital assets.”
There will be a status hearing on May 25, 2022, for the defendant’s Sam Ikkurty, Ravishankar Avadhanam, and Jafa LLC.
Assets belonging to Rose City Income Fund, Rose City Income Fund II LP, and Seneca Ventures LLC have been frozen by a District Court decision on May 11, 2022. The CFTC has revealed new information on the market.
Disgorgement of ill-gotten earnings, civil fines, permanent trading and registration bans, and a permanent injunction against future breaches of the Commodity Exchange Act (CEA) and CFTC rules are all part of the CFTC’s demands for compensation for deceived investors.
Websites and YouTube videos allegedly solicited over $44 million from at least 170 people to acquire, keep and trade digital assets (commodities), derivatives (derivative contracts), and commodity futures contracts.
As opposed to passively generating revenue via staking or well-managed trading, the defendants are accused of merely reallocating funds to other users in a Ponzi scheme-like manner, which they deny.
“Defendants also moved millions of dollars to an offshore corporation that, in turn, may have transferred monies to a foreign cryptocurrency exchange” for a total of $18 million,” according to the indictment.
2020’s “mining” activities have been documented in a blog entry from the year 2020. Scammers often use this word to deceive those who are new to the crypto realm.
It’s common knowledge that people mine cryptocurrency, but few know what it really implies. In order to deceive investors, the word “mining” is deliberately used to describe the process of creating cryptocurrency. Here’s what it says:
Investing in the Rose City Income Fund is our primary goal. From running digital toll booths, we make money. Fees are collected at these toll booths regardless of the market’s fluctuation. Market-neutral tactics, which provide steady revenue, are used by us. Synthetix is a stock in our portfolio that we purchased at a price of $0.5 last year. Another chance came up in March to expand.”
“Retirees are unable to produce any income from their investments,” the website adds, whereas its fund is “focused on capital preservation.” In a recent tweet, one of the defendants said,
We are seeing a global catastrophe as a result of incorrect economic incentives. China, which has a population four times larger, has more inmates in the “land of freedom” than the communist, totalitarian country.