Ikigai Strategic Partners, a cryptocurrency fund, has agreed to pay a $150,000 fine to the National Futures Association (NFA) in the United States for allegedly making an illicit Bitcoin loan. This decision was announced on August 20 by an NFA hearing panel.
The fine is part of the broader consequences stemming from the liquidity crisis that shook the crypto industry following the collapse of the FTX exchange in 2022. This incident also marks the latest effort by the NFA, which oversees the U.S. derivatives market, to regulate activities in the spot cryptocurrency markets.
According to the NFA’s statement on August 20, Ikigai Strategic allowed one of its operated pools to make an unauthorized loan of pool assets to an affiliate owned by fund principal Anthony Robert Emtman and another Ikigai Strategic principal.
Bitcoin declined sharply in 2022 amid the FTX crisis
In 2022, Ikigai allegedly loaned approximately $2.5 million worth of Bitcoin to a cryptocurrency exchange to benefit another fund managed by the same individuals who ran Ikigai. The fund reportedly held around $65 million, or 80% of its assets, on the exchange, though the exchange’s name was not disclosed.
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As a result of this loan, which the NFA claims violated Ikigai’s regulatory obligations, the fund was unable to fulfill redemption requests from its investors.
The complaint also states that Ikigai Strategic used the Master Fund’s Bitcoin as collateral for a $1.3 million line of credit in US Dollar Coin (USDC), which was extended to an affiliated fund, Ikigai Capital Partners GP LLC.
In response to the allegations, Ikigai and its principal operator agreed to the $150,000 fine without admitting or denying any wrongdoing.
On May 31, the NFA issued new rules to govern the conduct of member firms operating in the spot cryptocurrency markets, with a focus on regulating fraudulent and misleading practices. Before these rules were established, the self-regulatory organization had over 100 members involved in digital asset commodities but lacked the authority to address fraud or misconduct by those members, according to a letter from the NFA dated February 28.
Cre: cointelegraph.
I’m Jessi Lee, currently living in Singapore. I am currently working as a trader for AZCoin company, with 5 years of experience in the cryptocurrency market, I hope to bring you useful information and knowledge about virtual currency investment.
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