According to Odaily, a federal court in Illinois, USA, has ordered cryptocurrency hedge fund Jafia LLC and its boss, Sam Ikkurty, to pay $84 million to settle fraud allegations raised by the U.S. Commodity Futures Trading Commission (CFTC). Judge Mary Rowland, in her ruling, stated that Sam Ikkurty made various false statements about his company Jafia's cryptocurrency hedge fund operations, including claims about his experience in cryptocurrency trading.
Rowland also found that Ikkurty used other investors' funds to pay inflated buyback amounts to fund investors, describing it as a 'typical Ponzi scheme'. This ruling marks a significant development in the ongoing efforts to regulate and monitor the cryptocurrency industry, particularly in relation to hedge funds and their operations. The case serves as a reminder of the potential risks and legal implications involved in cryptocurrency trading and investment.