Judge Rules in Favor of CFTC, Declares Two Altcoins as Commodities in $120M Crypto Ponzi Scheme
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jul 05 2024- Illinois Court Ruling: An Illinois district court judge ruled in favor of the CFTC in a crypto Ponzi scheme case, declaring two altcoins as commodities.
- Ponzi Scheme Details: The scheme involved Sam Ikkurty from Oregon and his companies defrauding victims with promises of 15% yearly returns on investments in digital asset commodities like Bitcoin, Ether, Olympus (OHM), and KlimaDAO (KLIMA).
- Altcoins as Commodities: OHM and KLIMA were classified as commodities by the court, falling into the same category as Bitcoin.
- CFTC's Findings: Ikkurty misled investors by misrepresenting fund performance, resulting in significant losses and a shortfall in a carbon offset program.
- Legal Consequences: Judge Mary Rowland ordered Ikkurty to pay over $83.7 million in restitution and $36.9 million in disgorgement for his involvement in the Ponzi scheme.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
