The creator of a fraudulent scheme for $30 million pleaded guilty. A resident of Ohio, Michael Ackerman, who headed the company Q3 Trading Club, admitted to fraud with cryptocurrencies in the amount of $30,000,000. US Department of Justice reported this.
According to the indictment, since 2017, Ackerman has attracted funds to his trading company. He claimed that the algorithm he developed would bring investors 15% of the monthly profit.
Ackerman forged documents provided to investors, claiming that his fund managed $315 million in cryptocurrencies, whereas in fact there was never more than $5 million in the Q3 trading account.
Agreement to return more than $36 million
The organizer of the scheme spent the funds raised on travel, the purchase of jewelry, vehicles and other luxury items.
In February 2020, the US Securities and Exchange Commission accused the operators of Q3 Trading Club companies of receiving illegal income in the amount of $33 million.
Now Michael Ackerman has pleaded guilty and agreed to return more than $36 million to investors. To do this, he will sell his assets purchased with the money of depositors.
According to the Ministry of Justice, Akerman faces 20 years in prison for fraud using electronic means. The hearing on the case is scheduled for January 5, 2022.
The largest criminally prosecuted cryptocurrency fraud
Earlier, the former director and promoter of BitConnect, Glenn Arcaro, pleaded guilty to participating in a fraudulent scheme that lured more than $2 billion from investors in cryptocurrencies.
BitConnect is the largest criminally prosecuted cryptocurrency fraud. As stated by a press release from the US Department of Justice.
Consequently, Arcaro admitted that he colluded with other participants to deceive investors, using their interest in cryptocurrencies. The scammers sold them proprietary BitConnect tokens and promoted exchange trading with digital assets as a profitable investment.
In the end, the court ordered Arcaro to pay investors $24 million, which he earned from fraud.