Peter Kambolin, the former CEO of Systematic Alpha Management LLC (SAM), has been sentenced, for his involvement in a fraudulent “cherry-picking” scheme involving cryptocurrency futures contracts.
In April 2023, the U.S. Commodity Futures Trading Commission (CFTC) charged Kambolin and SAM with executing a scheme that involved allocating profitable futures trades in crypto to their in-house accounts, while assigning losses or less lucrative trades to their clients. This case highlights the increasing scrutiny by regulatory bodies on the practices within the cryptocurrency trading world.
Kambolin, a 48-year-old U.S.-Russian national, pleaded guilty on October 11, 2023, to conspiracy to commit commodities fraud. He was found to have fraudulently allocated profitable futures trades to his personal accounts, while his investors suffered the losses. This malpractice occurred between January 2019 and November 2021, a period during…
