US-based founder of $30 million cryptocurrency fraud scheme pleads guilty

An Ohio resident, Michael Ackerman, who led the Q3 Trading Club, pleaded guilty to cryptocurrency fraud totaling $30 million, according to the reports of the U.S. Department of Justice.

According to the indictment, since 2017 Ackerman attracted funds for his trading company. He claimed that the algorithm he developed would generate 15% monthly returns for investors.

Ackerman forged documents provided to investors, asserting that his fund managed $315 million in cryptocurrencies, while in fact the trading account at Q3 never held more than $5 million.

The funds raised by the scheme’s organizer were spent on travel, the purchase of jewelry, vehicles and other luxury goods.

In February 2020 the U.S. Securities and Exchange Commission charged the operators of Q3 Trading Club with illicit proceeds of $33 million.

Now Michael Ackerman has pleaded guilty and agreed to return more than $36 million to investors — by selling assets bought with the investors’ money.

According to the Department of Justice, Ackerman faces up to 20 years in prison for cryptocurrency fraud. A hearing in the case is scheduled for January 5, 2022.

Earlier, former BitConnect director and promoter Glenn Arcaro pleaded guilty to participating in a scheme that defrauded investors of more than $2 billion in cryptocurrency.

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