We always warn that the cryptocurrency market is a dangerous market in terms of not being subject to laws, and enjoying decentralization, which means that it is difficult to recover lost funds and there is no central authority responsible for returning the funds.

The US Attorney for the Southern District of New York announced last Wednesday that the leader of a multi-million dollar cryptocurrency fraud scheme has pleaded guilty to a cryptocurrency fraud.

According for press releaseMichael Ackerman has been accused of running a fake crypto scheme that has caused victims to lose more than $30 million.

Court documents reveal that Ackerman, a 52-year-old from Sheffield Lake, Ohio, ran a fake crypto fund in 2017 and raised funds by encouraging investors to allocate money in his scheme.

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He claimed that such an investment fund traded in bitcoin and other cryptocurrencies, and also falsely stated that he was the chief trading officer by controlling trading accounts on an unnamed cryptocurrency exchange.

By December 2019, Ackerman claimed that the investment fund had grown to about $315 million in value.

But all his claims were false, as the primary trading account he used had an account balance of only $5 million.

In fact, he stole $9 million from his victims to fund his lavish lifestyle, which includes jewelry, vehicles, travel expenses, and even personal security services.

Admission of guilt:

Today, Michael Ackerman admitted that he defrauded millions of dollars through his fake cryptocurrency scheme by falsely promoting monthly returns of more than 15 percent, falsifying documents to trick investors into believing his fund had a balance of over $315 million, and spending millions in cash. the investor himself.

Audrey Strauss, US Attorney General, commented on the announcement:

Ackerman is awaiting sentencing for his crime.

After pleading guilty before a US District Judge, he agreed to compensate at least $30,667,738.79 and confiscate $36,268,515, including fraudulently acquired assets.

Read:Lawyer uses Bank of Ireland to launder $300 million crypto-related money

The judge is expected to issue a ruling on January 5, 2022.

In July, the US Securities and Exchange Commission (SEC) obtained partial approval rulings against three individuals and an entity involved in a fraudulent unregistered initial coin offering (ICO) case.

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