The US-based CFTC broke through another multi-million dollar crypto investment scam. The Commodity Futures Trading Commission filed for an enforcement action against two perps – one Sam Ikkurty and Ravishankar Avadhanam – and three separate funds owned by the defendants: Seneca Ventures, Ikkurty Capital (Rose City Income Fund), and Rose City Income Fund II LP.
The official CFTC complaint revealed that the individuals solicited over $44 million since January 2021 by running a couple of channels, including a YouTube channel, a website, and other promotional means.
Over 170 investors were targeted, with the promise of clean and transparent digital assets, commodities, swaps, commodity futures contracts, and swap investments. Ikkurty and Avadhanam also ran a semi-Ponzi scheme by swindling funds of users to other clients.
It was also said on record that the perps transferred millions to some offshore entity and then laundered them through a crypto exchange.
The main charges attached to the defendants are for soliciting investors, for operating an illicit commodity pool, and for not registering with any market regulator. The CFTC is currently seeking financial reimbursement to be paid to the victims of the scam. Furthermore, the CFTC is seeking disgorgement of the unlawfully gained funds. The regulators also demands for civil monetary penalties and permanent trading bans, as well as lifetime injunctions.