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A court in the United States accused residents of The states of Oregon and Illinois and related companies of embezzling $ 44 million by organizing a fictitious scheme for investing in cryptocurrency funds. This was reported in CFTC.
According to the agency, since 2017, Sam Ikkurti, known as Srinivas I Rao, and Ravishankar Awadhanam have created three companies allegedly to attract investment.
Potential clients of Ikkurty Capital, Rose City Income Fund and Seneca Ventures were promised up to 62% annual profit. The attackers advertised the project, including with the help of videos on YouTube. In fact, all three companies worked on the principle of a financial pyramid.
In total, they managed to attract at least $ 44 million from 170 people.
According to the CFTC, most of the funds received by Ikkurti and Avadhanam were distributed as profits among the participants of the pyramid. The defendants transferred another $ 18 million to their own accounts. Part of the funds with the help of an offshore organization allegedly fell on an unnamed foreign cryptocurrency exchange.
The Federal Court of Illinois froze the assets and appointed an interim administrator to return the funds to the victims.
The next hearing in the case is scheduled for May 25. The CFTC intends to collect fines from the defendants and impose a permanent ban on trading, registration and future violations of the Commodity Exchange Act on their part.
Earlier, the US authorities accused the CEO of Mining Capital Coin of fraud for $ 62 million.
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