NYSE Broker Settles $54M CFTC Charges For Crypto Scam

Key Points:

• A former NYSE broker is ordered to pay $54 million in penalties for operating a fraudulent crypto trading scheme.
• Ackerman defrauded 150 investors, raising $33 million.
• He has been banned from trading by CFTC and is required to pay $27 million in restitution and a civil monetary penalty each.

Michael Ackerman, a former New York Stock Exchange (NYSE) broker, has been caught operating a fraudulent crypto trading scheme.

Ackerman was charged in 2020 with defrauding some 150 investors and raising $33 million by promising “extraordinary profits.” The Commodity Futures Trading Commission (CFTC) revealed that Ohio resident Ackerman has been ordered to pay $54 million in damages and penalties by a federal court.

Initially, Ackerman pleaded not guilty to running the scheme. However, he changed his plea to guilty in September 2021. This means that he is now banned from trading in any markets supervised by the watchdog by a judge at the Southern District of New York court.

The final order, signed on June 13, closes the CFTC enforcement case against Ackerman, according to a notice from the regulator. It requires him to pay $27 million in restitution to defrauded victims and a $27 million civil monetary penalty in connection with a fraudulent digital asset trading scheme.

The case against Ackerman is a clear warning to those who engage in fraudulent activity in the crypto trading world. The CFTC is taking steps to protect investors from these schemes, and it is important for traders to be aware of the risks involved when investing in digital assets.

“It also requires him to pay $27 million in restitution to defrauded victims and a $27 million civil monetary penalty in connection with a fraudulent digital asset trading scheme,” the notice said.

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