The final judgement forbids the defendant from partaking in any trading activities under CFTC’s jurisdiction, and denies him the right to register with the regulatory body.

On June 28th, the U.S. Commodity Futures Trading Commission (CFTC) relayed that Judge Naomi Reice Buchwald from the U.S. District Court for the Southern District of New York issued a default judgement. This verdict brings a permanent injunction against Michael Ackerman, a resident of Alliance, Ohio.

The judgement places an embargo on Ackerman, preventing him from involving in any trading activities in markets governed by the CFTC. He is also disallowed from registering with the CFTC. As part of the judgement’s penalties, Ackerman is obliged to provide $27 million as restitution to the victims of his fraudulent digital asset trading scheme. Further, he is required to pay a civil monetary fine of $27 million, marking a hefty financial repercussion for his deceptive endeavors.

Ackerman has been indicted with accusations of operating a fraudulent scheme, soliciting funds under false pretenses from individuals and entities. Allegedly, instead of directing the funds towards the stated purpose, he is accused of misusing a major portion of the funds for personal gain or sustaining the fraudulent trading scheme.

The case, pursued by the CFTC, dates back to February 11, 2020, when Ackerman was charged with devising an extensive scam running from August 2017 to December 2019. The accusation claimed that Ackerman exploited the scheme to solicit funds for trading digital commodity assets, but instead redirected the funds.

Reportedly, over 150 individuals and entities entrusted Ackerman with a total of at least $33 million. Astonishingly, less than $30% of these funds were actually allocated for trading, while the rest was illicitly diverted for personal use or to fuel the deceptive operation.

In a keynote speech at City Week 2023 in London, CFTC Commissioner Christy Goldsmith Romero proposed mitigating digital asset risks by decreasing cryptocurrency anonymity. Romero stressed the significance of collaboration between governments and the industry to combat the attraction of cryptocurrencies for illegal financing.

Romero asserted that managing digital asset risks is pivotal for maintaining market integrity, national security, and financial stability. She particularly pointed out the need to confront the issue of identity verification to curtail illegal financing risks in the cryptocurrency market, as the utilization of mixers and anonymity-enhancing technology presents significant potential hazards.

The judgement against Ackerman is an essential reminder of the potential risks in the digital asset landscape. As more individuals and entities move towards digital currencies, there needs to be an increased focus on regulatory compliance and risk management. This case underlines the importance of regulatory bodies in maintaining market integrity and protecting individual investors from fraudulent schemes.

Moreover, Romero’s comments underscore the need for a cooperative effort between the industry and governments to tackle illicit financing in the cryptocurrency market. As the industry continues to evolve, it is crucial for policymakers and stakeholders to develop and implement robust measures to ensure the security and transparency of digital asset transactions. This will not only deter fraudulent practices but also bolster the credibility of the digital asset ecosystem as a whole.