TL;DR Breakdown
• Michael Ackerman completed the largest crypto scam in the New York financial market.
• Ackerman must pay around $30 million, as agreed with the prosecution.
The North American Attorney General for Southern New York Audrey Strauss reveals that former stockbroker Michael Ackerman pleads guilty to a crypto scam. The former NYSE employee admits to stealing about $30 million in cryptocurrency fraud.
The attorney general’s office said that Ackerman falsified documents that deceived crypto investors. The victims thought that the broker had a $315 million fund to supported his virtual investment operations. However, both Ackerman and the money disappeared until he was apprehended in 2020.
Michael Ackerman orchestrated crypto scam
In 2017, Ackerman and other stockbrokers started with goodwill based on cryptocurrencies and recruited clients. The fund lets users invest in US dollars to buy Bitcoin and other popular tokens.
Michael Ackerman was fulfilling the goal of being the Goodwill director and controlling all affiliated trading accounts. According to Ackerman, that mutual fund, which turned out to be a vile crypto scam, was given over 15 percent extra rewards per month.
Before he was caught, Ackerman said the “fund” went from capitalizing at $37 million to $315 million. Many users were eager to get their rewards, but it never came.
Ackerman used more than $9 million for personal expenses. After the crypto scam came to light, it was discovered that Ackerman used the money for vehicles, jewelry, travel, and security systems in his real estate.
Ackerman breaks silence and pleads guilty
Since he was sent to prison, entrepreneur Michael Ackerman had not discussed the crypto scam he planned with other NYSE brokers. However, a few weeks ago, Ackerman accepted defeat by pleading guilty to all charges. With the evidence, the stockbroker could spend over two decades in prison.
According to what was agreed in the statement, the businessman has to return $30,667,738.79. $36 million in cash, jewelry, and real estate linked to the scam were also confiscated. Sentencing is scheduled for the 5th of January next year.
Prosecutor Strauss, who is handling the case for the largest crypto scam in New York, praises the investigations of the Tampa Federal Office and the El Dorado Task Force. She also says this case was not concluded without the help of attorneys at the Securities and Exchange Commission and the Commodity Futures Trading Commission.
The prosecutors who officially indicted Ackerman were Kiersten Fletcher, Sheb Swett, and Jessica Greenwood. The businessman was arrested for operating a criminal company and for money laundering using cryptocurrencies. After his release, Ackerman may be struck off the list of broker-dealers in New York.
