The creator of the $30M fraudulent crypto scheme pleaded guilty

by in Cryptocurrency News

Fraud

Ohio resident Michael Ackerman, who led the company Q3 Trading Club, confessed to a crypto fraud of $30 million, according to the US Department of Justice.

According to the indictment, since 2017, Ackerman has raised funds for his trading company. He claimed that the algorithm he developed would bring investors 15% of the monthly return.

Ackerman distorted documents provided to investors, claiming that his fund managed $ 315 million in cryptocurrencies, when in fact, the Q3 trading account never had more than $5M.

The organizer of the scheme spent the funds raised on travel, the purchase of jewelry, vehicles, and other luxury items.

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In February 2020, the US Securities and Exchange Commission accused the operators of Q3 Trading Club of receiving illegal income of $ 33 million.

Now Michael Ackerman has admitted his guilt and agreed to return more than $36M to investors - for this he will sell his assets, bought with depositors' money.

Ackerman faces 20 years in prison for electronic fraud. The hearing on the case is scheduled for January 5, 2022.