Key Takeaways:
- An Illinois judge ruled that OHM and KLIMA are classified as commodities in a CFTC crypto fraud case.
- Sam Ikkurty ran a $120 million Ponzi scheme involving Bitcoin, Ether, OHM, and KLIMA, promising 15% annual returns.
- Ikkurty must pay over $83.7 million in restitution and $36.9 million in disgorgement.
An Illinois judge has ruled in favor of the Commodity Futures Trading Commission (CFTC) in a crypto fraud case, classifying two altcoins, OHM and KLIMA, as commodities.
The case involved Sam Ikkurty from Oregon, who ran a Ponzi scheme promising 15% annual returns on investments in digital asset commodities like Bitcoin, Ether, Olympus (OHM), and KlimaDAO (KLIMA).
Judge sides with CFTC, deems OHM and Klima commodities in case involving crypto 'Ponzi'-like scheme https://t.co/fdsuurkENR
— The Block (@TheBlock__) July 3, 2024
Ikkurty misrepresented his fund’s performance, leading to a $120 million fraud, with much of the funds being transferred to early investors to prevent losses.
Judge Mary Rowland ordered Ikkurty to pay over $83.7 million in restitution and $36.9 million in disgorgement.
The CFTC had accused Ikkurty and Ravishankar Avadhanam of fraud and failing to register with the agency, having solicited over $44 million from at least 170 people via a website, YouTube videos, and other means.
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