Perpetrator of Crypto Pyramid Scheme Admits His Guilt, Probably Serve Jail Time of 20 Years

A case of crypto fraud was admitted for regular hearing by a Court in US in which the perpetrator of crypto pyramid scheme has pleaded guilty and accepted that he plundered more than US$ 30 Million belonging to the investors who subscribed to the fraud scheme. It is expected that the Court hearing the matter will announce a jail sentence spreading over 20 years against the main accused who admitted committing of fraud.

Last week, an announcement was made by the Department of Justice, US (DOJ). In the announcement, it was apprised that an alleged accused in crypto pyramid scheme namely Michael Ackerman had pleaded guilty. According to DOJ, Ackerman was the prime suspect launched pyramid scheme with sole intention of looting the money by defrauding the investors. Ackerman has been claimed as main perpetrator behind the fraudulent scheme which committed a multi-million dollar fraud upon the public in general.

It was told by DOJ that the hearing of the case was fixed by the office of the Court. When the date came, and Ackerman trial started, he was asked whether he wanted to plead “guilty” or “innocent”. However, the accused opted to plead “guilty” and admitted in the Court room that he had in fact plundered investors’ money. He also told the Court that the money he looted from scheme’s victims exceeded US$ 30 Million.

After the accused pleaded guilty, DOJ issued a press statement in which the admission of guilt by Ackerman was described. DOJ commented that there are several other charges levelled against Ackerman. However, he had pleaded guilty against one particular charge i.e. wire fraud. It is very unlikely that the Court will grant any compensation to Ackerman. In fact, there is high possibility that Ackerman will be serving next 20 years in Federal prison. In addition, he will be asked by the Court to return all the money with interest thereon to the victims whose money was plundered.

As regards the fraud committed by Ackerman took place some four years ago in 2017. Ackerman along with few of his accomplices, launched an investment scheme involving crypto. However, their intention was bad which was to commit a fraud. Unaware of their fraud plans, investors started to coming into the scheme. They were told by Ackerman that their money will be put into Bitcoin trading. At that time, Ackerman claimed himself to be the Chief Trading Officer of the pyramid scheme and personally contacted most of the victims.

He was in fact the one-man show who was bringing the investors and also managing day-to-day affairs of the scheme. He lied to the investors that they will be paid 15% profits upon their investment on month basis. He managed to deceive investors by end of 2019 and claimed that scheme’s investment into crypto has grown from US$37 Million to 315 Million. However, in reality, the balance sheet of the scheme never exceeded more than US$ 5 Million. DOJ said that the investors’ money was single-handedly used by Ackerman who was enjoying a luxurious life. But now Ackerman is facing trial and is awaiting Court’s ruling on his pleading “guilty” to one account.