The Securities and Exchange Commission (SEC) filed a lawsuit against a businessman who allegedly defrauded around 150 investors including physicians by orchestrating a cryptocurrency trading scheme.
In its complaint, the SEC alleged that the defendant named Michael Ackerman lured investors particularly medical practitioners by claiming that he developed a proprietary algorithm that enabled him to generate outstanding profits while trading cryptocurrencies.
Ackerman and his two business partners allegedly introduced the cryptocurrency investment opportunity scheme to physicians, who made investments in two entities, Q3 Trading Club and Q31 LP.
Defendant raised at least $33 million from cryptocurrency investors
They targeted physicians because one of Ackerman’s business partners is also a doctor. The three raised at least $33 million from investors, according to the federal securities regulator.
Additionally, the SEC alleged that Ackerman misled investors regarding the performance of his cryptocurrency trading. He also lied about his use of investor funds and its safety in the Q3 trading account.
