An Illinois judge has sided with the Commodity Futures Trading Commission in a crypto fraud case, labelling two altcoins, OHM and KLIMA, as commodities.
The Ponzi scheme involved a man from Oregon, Sam Ikkurty and several of his companies. The scheme defrauded victims by promising “steady returns” of 15% per year from investments in “digital asset commodities.”“Those virtual currencies fall into the same general class as Bitcoin, on which there is regulated futures trading,” said the CFTC.
OHM is the governance token of the OlympusDAO, an organizationthat aims to create a community-owned decentralized reserve currency., the CFTC said Ikkurty assured prospective participants he only invested in stable crypto assets and embellished stories of his prior successes to gain investors' confidence.