According to a notification from the U.S. commodities watchdog, a former New York Stock Exchange (NYSE) broker has been forced to pay $54 million in damages and penalties by a federal court for running a fraudulent crypto trading scam.According to the Commodity Futures Trading Commission (CFTC), a judge in the Southern District of New York court barred Ohio resident Michael Ackerman from trading in any markets under the watchdog’s jurisdiction.Ackerman was charged with fraud in 2020 after he allegedly defrauded 150 investors out of $33 million by promising “extraordinary profits.”
Ackerman amended his plea in September 2021 after previously entering a not guilty plea to operating the scam.The CFTC enforcement case against Ackerman is concluded as a result of the final order, which was signed on June 13 and was announced by the regulator.
“It also requires him to pay $27 million in restitution to defrauded victims and a $27 million civil monetary penalty in connection with a fraudulent digital asset trading scheme,” the notice said.