According to a release from the US Department of Justice, Michael Ackerman, an Ohio-based man who led an alleged $30 million cryptocurrency investment scam, pled guilty to wire fraud on Wednesday (DOJ).
Prosecutors claim that beginning in 2017, Ackerman told victims that they could invest in funds that would then be traded for cryptocurrency, claiming that the fund used an algorithm that would profit the investors 15% every month.
According to the DOJ release, he falsified documents and other communications with investors in order to claim that the crypto fund’s value increased. Ackerman claimed that the overall fund had grown to $315 million in value, despite the fact that it had always remained under $5 million.
Ackerman spent victims’ money on jewelry, cars, travel, and other personal luxury goods and services. In addition, the Ohio man agreed to forfeit over $36,000,000 in personal assets purchased with victim investments.
According to the DOJ, Ackerman will be sentenced on January 5, 2022, and could face a maximum sentence of 20 years for wire fraud.