New York, NY – Michael Ackerman has been accused of orchestrating a $33 million fraud involving digital asset investments, according to a complaint filed by the Commodity Futures Trading Commission (CFTC) in the U.S. District Court for the Southern District of New York. The complaint alleges Ackerman, along with his companies Q3 Holdings, LLC and Q3 I, LP, fraudulently solicited funds from investors with promises of substantial returns.
From August 2017 through December 2019, Ackerman and his firms allegedly claimed to generate daily profits of .5% and monthly profits of approximately 15% through algorithmic trading of digital assets. They further asserted a 75% win rate and impenetrable security measures protecting customer funds, the CFTC alleges. However, investigators found that only a small fraction of the collected funds were actually used for trading.
The CFTC complaint details that Ackerman misappropriated a “substantial portion” of the $33 million raised from investors, failing to deliver on promised returns. To maintain the facade of a successful operation, the defendants allegedly provided customers with fabricated accounting statements, misleading newsletters showcasing false trading gains, and doctored screenshots inflating the amount of assets under management.
Ackerman was arrested today on a charge of wire fraud brought by the U.S. Attorney’s Office for the Southern District of New York. Simultaneously, the Securities and Exchange Commission (SEC) filed a separate complaint against Ackerman and Q3, alleging securities fraud and misappropriation of funds. The SEC’s complaint adds to the mounting legal pressure on Ackerman and his companies.
The CFTC’s investigation was conducted in coordination with the U.S. Attorney’s Office, Homeland Security Investigations’ El Dorado Task Force, the Federal Bureau of Investigation, and the SEC. The case highlights increased regulatory scrutiny of digital asset investments and a commitment to combating fraud within the emerging financial sector, according to CFTC Director of Enforcement James McDonald.
Source: CFTC.gov
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