US Judge Deems Cryptocurrencies OHM and Klima to be “Commodities” in Jafia LLC Fraud Case

U.S. District Judge Mary Rowland of Illinois sided with the U.S. Commodity Futures Trading Commission (CFTC) in ordering Oregon man Sam Ikkurty and his companies Jafia LLC, Ikkurty Capital, LLC (aka Rose City Income Fund I), Rose City Income Fund II, and Seneca Ventures, LLC to pay more than $120 million ($83.7 million in damages and $36.9 million in disgorgement), in part to compensate victims of what the CFTC called a “Ponzi scheme.” Notably, cryptocurrencies OHM and Klima are commodities in the order. The CFTC said in a statement: "The order not only finds that Bitcoin and Ethereum fall under the jurisdiction of the CFTC, but also that two non-Bitcoin virtual currencies, 'OHM' and 'Klima', are commodities, and points out that these virtual currencies are in the same category as Bitcoin and have regulated futures trading." Judge Rowland's move to treat OHM and Klima as commodities may not mean much other than establishing the CFTC's jurisdiction over the case. (The Block) Previously, a federal court in Illinois ordered cryptocurrency hedge fund Jafia LLC and its owner Sam Ikkurty to pay $84 million to settle fraud charges filed by the U.S. Commodity Futures Trading Commission (CFTC).