- Crypto fund Ikigai Strategic was fined by the NFA for violations in operational procedures.
- The fund was one among the institutions that suffered major losses during the FTX collapse.
In the past few months, within crypto regulations, there have been numerous reports of advancements and lawsuits. While leading cryptocurrency firms such as Coinbase and Ripple battled with the SEC, other institutions also encountered legal issues. Recently, Ikigai Strategic Partners, a cryptocurrency fund was found to have mismanaged Bitcoin loans by US regulators.
Notably, the US National Futures Association (NFA) released a report on August 20 that imposed a $150,000 fine on the firm for its misconduct. Additionally, NFA’s announcement stated that the firm was investigated following a complaint filed in April 2024, by its Business Conduct Committee.
Ikigai Strategic and its President Anthony Robert Emtman were believed to have violated the NFA’s requirements by allowing illegal funds movements. Particularly, Ikigai Strategic allowed one of its funds – Ikigai Opportunities Master Fund Ltd. to make an advance of pool assets. This advance was made to another affiliate and is prohibted according NFA.
Secondly, Ikigai Strategic also violated requirements by allowing the Master fund to ‘commingle’ its assets with another pool. This pool was a non-member affiliate of Ikigai Strategic. Due to these violations, the firm received the aforementioned fines from the NFA.
How Did Ikigai Strategic Respond to the NFA’s Complaint?
The crypto fund Ikigai Strategic agreed to a settlement with the fine without denying the allegations made by the regulator. Additionally, the fund is expected to pay its fines within 30 days of the statement being released. Moreover, president Emtman who was also an associate of the NFA was given a period of ineligibility to serve in disciplinary committees.
Furthermore, the fund was also largely affected by the FTX collapse of 2022. During the time, Ikigai was unable to retrieve its funds invested in the FTX exchange except very little.
Meanwhile, Binance was charged with another lawsuit charging the exchange for money laundering in the past day. On the other hand, the SEC continues to battle against leading institutions such as Ripple and Coinbase alleging violations.
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