REJECTEDWALL #179
Sam Ikkurty
Posted April 14, 2026
PERMANENT LINKcftcsucks.com/179
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SAM IKKURTY — CONSTITUTIONAL RIGHTS ADVOCATE samikkurty.com
C A S E A N A L Y S I S
Why the CFTC's 'Ponzi Scheme'
Allegation Is Mathematically
Impossible
Published at samikkurty.com/blog/ponzi-scheme-allegation-mathematically-impossible |
Case No. 1:22-cv-02465 (N.D. Ill.) | 7th Cir. No. 24-2684
The CFTC's central allegation — that Rose City Fund operated as a Ponzi
scheme — is not just factually wrong. It is mathematically impossible, as
demonstrated by the independent StoneTurn analysis and the fund's own
blockchain records.
## What Is a Ponzi Scheme?
A Ponzi scheme has one defining mathematical characteristic:
withdrawals must be funded by new investor capital, not by real
investment returns. This means:
1. The scheme must continuously attract new investors to pay existing
ones
2. The scheme must collapse when new investment cannot cover
withdrawals
3. There can be no legitimate returns — all "profits" are simply
redistributed capital
## Why Our Returns Disprove the Ponzi Theory
C A S E A N A L Y S I S
Why the CFTC's 'Ponzi Scheme'
Allegation Is Mathematically
Impossible
Published at samikkurty.com/blog/ponzi-scheme-allegation-mathematically-impossible |
Case No. 1:22-cv-02465 (N.D. Ill.) | 7th Cir. No. 24-2684
The CFTC's central allegation — that Rose City Fund operated as a Ponzi
scheme — is not just factually wrong. It is mathematically impossible, as
demonstrated by the independent StoneTurn analysis and the fund's own
blockchain records.
## What Is a Ponzi Scheme?
A Ponzi scheme has one defining mathematical characteristic:
withdrawals must be funded by new investor capital, not by real
investment returns. This means:
1. The scheme must continuously attract new investors to pay existing
ones
2. The scheme must collapse when new investment cannot cover
withdrawals
3. There can be no legitimate returns — all "profits" are simply
redistributed capital
## Why Our Returns Disprove the Ponzi Theory
Charles R. Soha, CFE, Managing Director at StoneTurn Group, conducted
an independent analysis of Rose City Fund's financial records. His
findings:
- Fund II investors received returns as high as 339.55% in one year
- Fund I achieved a mean CAGR of 303% for exiting partners
These returns are mathematically impossible in a Ponzi scheme. Here is
why:
In a Ponzi scheme, if investors are receiving 303% annual returns, the
scheme would need to attract 3x its existing capital base every year just to
break even. No Ponzi scheme in history has sustained this — they all
collapse within months.
The only explanation for these returns is legitimate investment gains — in
this case, from DeFi protocols on the Ethereum blockchain.
## The Blockchain Evidence
Every single transaction in Rose City Fund is recorded immutably on the
Ethereum blockchain at wallet address
0x168fa4917e7cd18f4ed3dc313c4975851ca9e5e7. This is a public record
that anyone can verify.
The blockchain shows:
- $19 million in verifiable DeFi transactions
- Legitimate interactions with DeFi protocols (OHM, KLIMA, and others)
- No evidence of fund commingling or misappropriation
Investigator Dasso admitted under oath: "As far as this case, I did not
look at the blockchain, correct." Her answer: "Correct."
an independent analysis of Rose City Fund's financial records. His
findings:
- Fund II investors received returns as high as 339.55% in one year
- Fund I achieved a mean CAGR of 303% for exiting partners
These returns are mathematically impossible in a Ponzi scheme. Here is
why:
In a Ponzi scheme, if investors are receiving 303% annual returns, the
scheme would need to attract 3x its existing capital base every year just to
break even. No Ponzi scheme in history has sustained this — they all
collapse within months.
The only explanation for these returns is legitimate investment gains — in
this case, from DeFi protocols on the Ethereum blockchain.
## The Blockchain Evidence
Every single transaction in Rose City Fund is recorded immutably on the
Ethereum blockchain at wallet address
0x168fa4917e7cd18f4ed3dc313c4975851ca9e5e7. This is a public record
that anyone can verify.
The blockchain shows:
- $19 million in verifiable DeFi transactions
- Legitimate interactions with DeFi protocols (OHM, KLIMA, and others)
- No evidence of fund commingling or misappropriation
Investigator Dasso admitted under oath: "As far as this case, I did not
look at the blockchain, correct." Her answer: "Correct."
The lead investigator in a case involving a DeFi fund never reviewed the
blockchain. This is not incompetence — it is willful blindness.
## Conclusion
The CFTC's Ponzi scheme allegation fails on every level:
- Mathematically impossible given the verified returns
- Factually disproven by the blockchain records
- Contradicted by the investigators' own sworn testimony
The prosecution of Rose City Fund is not about protecting investors. It is
about regulatory overreach — and the evidence proves it.
Sam Ikkurty · samikkurty.com · All documents and evidence available at samikkurty.com/
legal-documents
blockchain. This is not incompetence — it is willful blindness.
## Conclusion
The CFTC's Ponzi scheme allegation fails on every level:
- Mathematically impossible given the verified returns
- Factually disproven by the blockchain records
- Contradicted by the investigators' own sworn testimony
The prosecution of Rose City Fund is not about protecting investors. It is
about regulatory overreach — and the evidence proves it.
Sam Ikkurty · samikkurty.com · All documents and evidence available at samikkurty.com/
legal-documents
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Submission trackF
StatusREJECTED
Posted2026-04-14T08:14:06.000Z
SHA-256 hashba8ec41a7bb8e9ae8040df9f9bc8ac55b0182e978859b67eb5c6ce6b50e3f5d3
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