CFTC Issues Complaint Against Illinois & Oregon Residents And Florida Company In $44 Million Illegal Fundraising 

The Commodity Futures Trading Commission (CFTC) filed a civil enforcement action on Thursday. It is against an Oregon and Illinois resident along with a Florida company for collecting $44 million in digital asset investments through illegal means. 

Jafia LLC, a Florida-based company, Ravishankar Avadhanam (IL), and Sam Ikkurty a/k/a Sreenivas I Rao (OR) were specifically mentioned by The CFTC.

The defendants are accused of running an illegal commodity pool while it couldn’t register itself as a Commodity Pool Operator. In addition, the complaint levied charges against three funds disguised as “relief defendants” owned and run by the defendants. The funds were: Seneca Ventures LLC, Rose City Income Fund II LP (Rose City), and Ikkurty Capital LLC d/b/a Rose City Income Fund.

The defendants used websites and YouTube videos to collect funds worth over $44 million from more than 170 participants stating the use-cases as: “to purchase, hold, and trade digital assets, commodities, derivatives, swaps and commodity futures contracts,” according to the CFTC. 

The defendants rather than using the pooled participant funds as promised distributed them to other participants, pretty much like a Ponzi Scheme. Moreover, the defendants are also alleged of transferring a portion of the funds for their benefit to off-shore accounts under their control.

CFTC Orders To Freeze The Assets Under Control Of Defendants

In order to freeze the assets under the control of the defendants, the commission has issued an ex parte order as well as made the appointment of a temporary receiver to protect records.

One hearing of the case is scheduled on May 25, 2022. There are various customer protection Fraud Advisories and Articles issued by the CFTC. Among them, one is to make the public aware of the possible risks associated with investing or speculating in digital assets or newly launched Bitcoin futures and options.

The CFTC is aiming to refund all the investors affected by the scheme. It is also working on putting permanent banks, levy fines, and announcing other punishments. 

US Agencies Tightening Their Hold Over Crypto Assets 

The Executive Order by President Biden has provided momentum to the US agencies in studying and analyzing the booming crypto industry to protect its citizens better. The SEC has already vowed to exercise strict supervision over the crypto sector.

To implement federal consumer laws, the Consumer Financial Protection Bureau (CFPB) has revealed that it plans to issue the Consumer Financial Protection Circulars for the regulators.

The crypto meltdown over the past few weeks has resulted in increased interest from regulators and lawmakers.

ALSO READ: Michael Saylor Remains Optimistic On Bitcoin, Despite Downtrends

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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