U.S. Court Fines $209 Million for a Ponzi Scheme Masquerading as a Crypto and Carbon Investment Program

The U.S. Commodity Futures Trading Commission (CFTC) reported Tuesday that Judge Mary Rowland of the U.S. District Court for the Northern District of Illinois has ordered Oregon resident Sam Ikkurty and several of his entities to pay a $209.61 million fine. The entities involved include Jafia LLC, Ikkurty Capital LLC, Rose City Income Fund I LP, Rose City Income Fund II, and Seneca Ventures LLC.The court's decision is based on the CFTC's finding of fraudulent solicitation and misappropriation of funds, which the CFTC has described as a Ponzi scheme disguised as a cryptocurrency and carbon investment program. 
The judgment requires Sam Ikkurty to pay $83.7 million in restitution to investors to offset $36.9 million in ill-gotten gains, in addition to a civil penalty of $110.9 million.