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- Michael Ackerman, the CEO and his co-conspirators promised 5% of profits from daily trading in digital currency. They ended up using the funds for personal use.
- A total of $33 million had been raised. There was a transference of only a small amount of profits to the investors since then.
- The SEC, along with the FBI and CFTC aims to ban Ackerman. They also aim to ban his accomplice, for life from all financial activities.
In early February, Ohio based cryptocurrency startup, Q3 Trading Club and Q3 I LP, holding companies of Q3, was found to have duped 150 investors of approximately $33 million through various rounds of funding. The US Commodity Futures Trading Commission has requested entry of default for the total funds embezzled, as the time to respond to the lawsuit has expired. Michael Ackerman, the CEO and his co-conspirators promised 5% of profits from daily trading in digital currency but ended up using the funds for personal use.
Investors Allegations Against Michael Ackerman
The Commission wants to press charges against the criminals as they have served them properly and have waited too long for a response from them. A total of $33 million had been raised from 2017 to 2019. There was a transference of only a small amount of profits to the investors since then. The usage of money provided by the investors was to purchase luxurious houses, vehicles, jewelry, and personal security. Additionally, the Securities Exchange Commission has charged Ackerman for wire fraud in the same case. It also alleged that the CEO doctored screenshots of Q3’s trading account to create an illusion that the company is reaping profits. There took place a levying of charges of antifraud provisions. And, if found guilty, he may be locked up for approximately 20 years.
Actions Demanded Against Q3
Criminals use a common mechanism of providing false statements as proof of prosperity to commit crimes of various types. In this case, investors demand the full repayment and the laying upon of relevant penalities. It will act as a precedence for other criminals who are about to commit thefts on the same lines. Moreover, the startup did not have a fund administrator which took a toll on their ethos and policies.
The SEC, along with the FBI and CFTC aims to ban Ackerman along with his accomplice, for life from all financial activities. The criminals or their successors have to furnish complete details. They have to furnish details of the fraud including assets, liabilities funds raised and all personal expenses made thereof.
Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
