The U.S. Commodity Futures Trading Commission (CFTC) has won a significant legal battle against Sam Ikkurty, Ravishankar Avadhanam, and Jafia LLC for violations of the Commodity Exchange Act (CEA) in connection with cryptocurrency investments.

The court's summary judgment found that the defendants misrepresented their crypto fund performance, ran a Ponzi-like (CRYPTO:PONZI) scheme by redistributing participant funds, and falsely claimed investment expertise.

Ikkurty and Avadhanam solicited millions for their unregistered "crypto hedge funds" while engaging in fraudulent activities.

The court ordered $83,757,249 in restitution and $36,967,285 in disgorgement.

This decision reinforces the need for strict regulatory adherence in the crypto sector.