Cryptocurrency trader pleads guilty in Cherry Picking futures scheme

The former CEO of a Miami investment firm faces up to five years in prison after pleading guilty to conspiracy to commit commodities fraud involving cryptocurrency futures contracts.

The U.S. Department of Justice said in a statement on October 12 that Peter Kambolin, the former CEO of Systematic Alpha Management, implemented a cherry-picking scheme in which he marketed his company as offering algorithmic trading strategies involving futures contracts. Includes cryptocurrencies and cryptocurrencies.

However, Kambolin lied to investors that its funds involved trading in cryptocurrency futures and FX futures, when in fact approximately half of Kambolin’s trades in each pool involved stock index futures contracts.

"By doing so, Camblin defrauded investors in the United States and abroad, including by depriving them of profitable trades," prosecutors wrote.

Cherry-picking is a fraudulent securities trading practice in which A practice in which a person executes trades without allocating those trades to a specific trading account until the individual determines whether the trade was a profit or a loss.

According to the Justice Department, Cambolin defrauded U.S. and foreign investors, depriving them of lucrative deals and then used the proceeds to pay for his own personal expenses, including rent on an oceanfront condominium.

Proceeds from his scheme were transferred to foreign bank accounts controlled by Belarusian and Dominican co-conspirators.

Shimon Richmond, Assistant Inspector General for Investigations, said: “Yesterday’s guilty plea recognizes the importance of holding defendants accountable for their actions to mislead and defraud investors through a carefully chosen scheme that they exploited The proceeds were used to finance his personal lifestyle." After pleading guilty, Camblin now faces a maximum sentence of five years in prison. His sentencing hearing will be held at an unspecified future date.

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