US authorities continue to crack down on any crypto scheme that seems illegitimate. Trading Club is now on the radar of the SEC and CFTC.
There is a lot of interest in trading cryptocurrencies these days.
Trading Club Wasn’t Helping Investors
Most people would love to join a trading group for signals and potential profits.
Trading Club, also known as Q3 Trading Club, was one of the more successful ventures in this regard.
So much even that the group raised $33 million in funding from investors.
The project apparently had its own custom algorithm capable of generating profits by trading cryptocurrencies.
To back up these claims, Michael Ackerman forged evidence, according to sources close to the matter.
Evidence seems to indicate that Trading Club never had over $6 million in assets.
That is interesting, as the company claimed to have a balance sheet of well over $315 million at one point.
Some of the investors’ funds were also misappropriated, but that was to be expected.
Ackerman decided to buy high-end goods, hired personal security, and renovated some real estate in the process.
For now, the investigation is still ongoing, with a sentencing expected to take place soon.
The SEC seeks a disgorgement and civil penalty, as well as a permanent injunction.