WALLWALL #77
Sam Ikkurty
Posted April 12, 2026
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1
IN THE UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
)
COMMODITY FUTURES TRADING )
COMMISSION, )
) Civil Action No. 22-cv-02465
Plaintiff, )
)
v. ) Honorable Mary M. Rowland
)
SAM IKKURTY A/K/A SREENIVAS I RAO, ) Magistrate Judge
RAVISHANKAR AVADHANAM, AND ) Cummings
JAFIA, LLC, )
)
Defendants, )
)
IKKURTY CAPITAL, LLC D/BA/ ROSE CITY )
INCOME FUND I, LP, ROSE CITY INCOME )
FUND II LP, AND SENECA VENTURES, LLC, )
)
Relief Defendants. )
)
RECEIVER’S TENTH STATUS REPORT
James L. Kopecky, not individually, but solely as the Court-appointed Receiver (the
“Receiver”) for the Receivership Estate, as defined by the Order Appointing Receiver dated May
11, 2022 (Dkt. 18) (“Receivership Order”), makes the following report summarizing efforts to
marshal and collect assets, administer the Receivership Estate, and otherwise perform the duties
mandated by the Receivership Order. The Receiver incorporates his prior reports (Dkt. Nos. 36,
75, 109, 157, 199, 295, 336, 355 and 377) for background, and attempts to minimize duplication
of those reports herein.
The Receivership Order requires the Receiver to, periodically, as directed by the Court,
file with the Court and serve on the parties a report summarizing efforts to marshal and collect
assets, administer the Receivership Estate, and otherwise perform the duties mandated by the
Case: 1:22-cv-02465 Document #: 410 Filed: 11/01/24 Page 1 of 7 PageID #:5704
IN THE UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
)
COMMODITY FUTURES TRADING )
COMMISSION, )
) Civil Action No. 22-cv-02465
Plaintiff, )
)
v. ) Honorable Mary M. Rowland
)
SAM IKKURTY A/K/A SREENIVAS I RAO, ) Magistrate Judge
RAVISHANKAR AVADHANAM, AND ) Cummings
JAFIA, LLC, )
)
Defendants, )
)
IKKURTY CAPITAL, LLC D/BA/ ROSE CITY )
INCOME FUND I, LP, ROSE CITY INCOME )
FUND II LP, AND SENECA VENTURES, LLC, )
)
Relief Defendants. )
)
RECEIVER’S TENTH STATUS REPORT
James L. Kopecky, not individually, but solely as the Court-appointed Receiver (the
“Receiver”) for the Receivership Estate, as defined by the Order Appointing Receiver dated May
11, 2022 (Dkt. 18) (“Receivership Order”), makes the following report summarizing efforts to
marshal and collect assets, administer the Receivership Estate, and otherwise perform the duties
mandated by the Receivership Order. The Receiver incorporates his prior reports (Dkt. Nos. 36,
75, 109, 157, 199, 295, 336, 355 and 377) for background, and attempts to minimize duplication
of those reports herein.
The Receivership Order requires the Receiver to, periodically, as directed by the Court,
file with the Court and serve on the parties a report summarizing efforts to marshal and collect
assets, administer the Receivership Estate, and otherwise perform the duties mandated by the
Case: 1:22-cv-02465 Document #: 410 Filed: 11/01/24 Page 1 of 7 PageID #:5704
2
Receivership Order. This is the tenth such report.
I. Administration of Receivership Estate
a) Claims and Distribution Process
The claims process is being administered through Stretto with assistance from Kopecky
Schumacher Rosenburg, LLC (“KSR”). On or about October 24, 2024, KSR sent claims
determination letters via email1 and U.S. Mail to every investor who submitted a claim. The
Receiver approved 170 claims in their entirety, issued partial rejection letters regarding 180
claims, and denied 51 claims in their entirety. Since that mailing, the Receiver and his claims
team have been fielding numerous telephone and email inquiries regarding a host of issues. The
majority of the inquiries involve investors who did not receive their determination letter and
often that is because the email went to their junk or spam folders, and the postal copy is still in
transit. The Receiver has posted guidance on the claims process to the Receivership website. The
Receiver is encouraging claimants to check their spam and junk folders and to communicate
through the receivership email address such that the claims team can monitor and maintain
accurate records. The claims team is addressing those inquiries as they are received. Full details
of the claims process are set forth in the Receiver’s motion to approve the claims process, (Dkt.
195) which the Court subsequently approved. (See, Dkt. Nos. 278 and 299.) Investors have 90
days from the receipt of a partial or wholesale rejection letter to seek reconsideration of the
Receiver’s determination.
b) Profitable Investors
The Receiver is taking steps to recoup the “net profits” from certain investors (i.e., those
investors who redeemed their investments for more than their principal investment prior to the
1 Certain investors did not provide email addresses. Claims determination letters were sent to those
investors via U.S. Mail only.
Case: 1:22-cv-02465 Document #: 410 Filed: 11/01/24 Page 2 of 7 PageID #:5705
Receivership Order. This is the tenth such report.
I. Administration of Receivership Estate
a) Claims and Distribution Process
The claims process is being administered through Stretto with assistance from Kopecky
Schumacher Rosenburg, LLC (“KSR”). On or about October 24, 2024, KSR sent claims
determination letters via email1 and U.S. Mail to every investor who submitted a claim. The
Receiver approved 170 claims in their entirety, issued partial rejection letters regarding 180
claims, and denied 51 claims in their entirety. Since that mailing, the Receiver and his claims
team have been fielding numerous telephone and email inquiries regarding a host of issues. The
majority of the inquiries involve investors who did not receive their determination letter and
often that is because the email went to their junk or spam folders, and the postal copy is still in
transit. The Receiver has posted guidance on the claims process to the Receivership website. The
Receiver is encouraging claimants to check their spam and junk folders and to communicate
through the receivership email address such that the claims team can monitor and maintain
accurate records. The claims team is addressing those inquiries as they are received. Full details
of the claims process are set forth in the Receiver’s motion to approve the claims process, (Dkt.
195) which the Court subsequently approved. (See, Dkt. Nos. 278 and 299.) Investors have 90
days from the receipt of a partial or wholesale rejection letter to seek reconsideration of the
Receiver’s determination.
b) Profitable Investors
The Receiver is taking steps to recoup the “net profits” from certain investors (i.e., those
investors who redeemed their investments for more than their principal investment prior to the
1 Certain investors did not provide email addresses. Claims determination letters were sent to those
investors via U.S. Mail only.
Case: 1:22-cv-02465 Document #: 410 Filed: 11/01/24 Page 2 of 7 PageID #:5705
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Court-imposed asset freeze). The Receiver initially contacted the profitable investors concerning
their improper gains in May of 2023. Upon the finding of liability against Mr. Ikkurty and the
other Defendants, the Receiver began taking additional steps to collect those amounts.
Specifically, the Receiver is currently in discussions with an attorney who is considering
representing the Receiver in lawsuits against the profitable investors on a contingency basis. If
those discussions continue to progress, the Receiver will provide the Court with the details of the
proposed engagement and seek the Court’s approval to retain counsel for that purpose.
c) Pending Investor Class Actions
As reported in the Receiver’s Ninth Status Report (Dkt. 377), the Receiver continues to
cooperate with the law firm retained on behalf of certain investors to pursue claims against
financial institutions that held investor funds controlled by Mr. Ikkurty. The lawsuit generally
alleges that several commercial banks which held accounts for the Funds and their principals
violated state securities laws and aided and abetted breaches of fiduciary duty. If successful, the
funds recovered will be contributed to the Qualified Settlement Fund (“QSF”). Information about
that lawsuit, and the attorneys handling that lawsuit, can be found on the Receiver’s website:
www.rosecityfundreceivership.com. The Receiver’s attorney is monitoring that lawsuit.
d) Communications with Investors
The Receiver regularly posts the material documents in this action to the
www.rosecityfundreceivership.com website and maintains a list of frequently asked questions
and answers relating to the Receivership. The Receiver continues to update this website as
significant events unfold. In addition, the Receiver established an email account for the
Receivership to communicate with investors. Many investors communicate through the email
and others email the Receiver and his attorneys directly. Recent communications relate primarily
Case: 1:22-cv-02465 Document #: 410 Filed: 11/01/24 Page 3 of 7 PageID #:5706
Court-imposed asset freeze). The Receiver initially contacted the profitable investors concerning
their improper gains in May of 2023. Upon the finding of liability against Mr. Ikkurty and the
other Defendants, the Receiver began taking additional steps to collect those amounts.
Specifically, the Receiver is currently in discussions with an attorney who is considering
representing the Receiver in lawsuits against the profitable investors on a contingency basis. If
those discussions continue to progress, the Receiver will provide the Court with the details of the
proposed engagement and seek the Court’s approval to retain counsel for that purpose.
c) Pending Investor Class Actions
As reported in the Receiver’s Ninth Status Report (Dkt. 377), the Receiver continues to
cooperate with the law firm retained on behalf of certain investors to pursue claims against
financial institutions that held investor funds controlled by Mr. Ikkurty. The lawsuit generally
alleges that several commercial banks which held accounts for the Funds and their principals
violated state securities laws and aided and abetted breaches of fiduciary duty. If successful, the
funds recovered will be contributed to the Qualified Settlement Fund (“QSF”). Information about
that lawsuit, and the attorneys handling that lawsuit, can be found on the Receiver’s website:
www.rosecityfundreceivership.com. The Receiver’s attorney is monitoring that lawsuit.
d) Communications with Investors
The Receiver regularly posts the material documents in this action to the
www.rosecityfundreceivership.com website and maintains a list of frequently asked questions
and answers relating to the Receivership. The Receiver continues to update this website as
significant events unfold. In addition, the Receiver established an email account for the
Receivership to communicate with investors. Many investors communicate through the email
and others email the Receiver and his attorneys directly. Recent communications relate primarily
Case: 1:22-cv-02465 Document #: 410 Filed: 11/01/24 Page 3 of 7 PageID #:5706
4
to the claims determination letters. The Receiver and/or his claims team responds to those
communications as they are received.
e) Tax Returns and Accounting
As previously reported, there will be no individual K-1s issued to investors for 2023 or any
subsequent years. The assets are held in the QSF. Miller Kaplan has been timely filing the
quarterly tax returns and obtained an extension to file the QSF’s final tax returns for tax year
2023. On October 14, 2024, the Receiver caused tax year 2023 income tax returns to be filed
with the State of Illinois and with the Internal Revenue Service for the United States. The returns
showed a net operating loss of $87,774. Together with the net operating loss from tax year 2022,
the Qualified Settlement Fund retains a carry-over net operating loss of $187,422.00.
f) Liquidation of Digital Assets
Upon the CFTC’s recovery of the stolen digital assets in August 2024, the Receiver
retained a consulting firm, Ankura, to replace Project B and advise the Receiver on best practices
for securing and liquidating the digital assets. After consultation, the Receiver opened an account
with Coinbase Prime and transferred the recovered assets into that account. The Receiver brought
a Motion to Liquidate Digital Assets (Dkt. No. 409) which the Court granted on October 17,
2024. (Dkt. No. 408) On October 23, 2024, with the assistance of the Coinbase Trading Desk, the
Receiver liquidated approximately $18 million dollars in digital assets. The liquidation took place
over the course of 4 hours, and the digital assets were successfully sold in exchange for U.S.
dollars without negatively affecting the market price for the digital assets. The Receiver then
transferred the funds to the previously established bank account for the QSF. The Receiver
continues to hold a de minimis amount of digital assets that require additional steps to be
performed prior to liquidation. The Receiver is in the process of liquidating those remining digital
Case: 1:22-cv-02465 Document #: 410 Filed: 11/01/24 Page 4 of 7 PageID #:5707
to the claims determination letters. The Receiver and/or his claims team responds to those
communications as they are received.
e) Tax Returns and Accounting
As previously reported, there will be no individual K-1s issued to investors for 2023 or any
subsequent years. The assets are held in the QSF. Miller Kaplan has been timely filing the
quarterly tax returns and obtained an extension to file the QSF’s final tax returns for tax year
2023. On October 14, 2024, the Receiver caused tax year 2023 income tax returns to be filed
with the State of Illinois and with the Internal Revenue Service for the United States. The returns
showed a net operating loss of $87,774. Together with the net operating loss from tax year 2022,
the Qualified Settlement Fund retains a carry-over net operating loss of $187,422.00.
f) Liquidation of Digital Assets
Upon the CFTC’s recovery of the stolen digital assets in August 2024, the Receiver
retained a consulting firm, Ankura, to replace Project B and advise the Receiver on best practices
for securing and liquidating the digital assets. After consultation, the Receiver opened an account
with Coinbase Prime and transferred the recovered assets into that account. The Receiver brought
a Motion to Liquidate Digital Assets (Dkt. No. 409) which the Court granted on October 17,
2024. (Dkt. No. 408) On October 23, 2024, with the assistance of the Coinbase Trading Desk, the
Receiver liquidated approximately $18 million dollars in digital assets. The liquidation took place
over the course of 4 hours, and the digital assets were successfully sold in exchange for U.S.
dollars without negatively affecting the market price for the digital assets. The Receiver then
transferred the funds to the previously established bank account for the QSF. The Receiver
continues to hold a de minimis amount of digital assets that require additional steps to be
performed prior to liquidation. The Receiver is in the process of liquidating those remining digital
Case: 1:22-cv-02465 Document #: 410 Filed: 11/01/24 Page 4 of 7 PageID #:5707
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assets.
g) Attorneys’ Fees Returned to Receivership Estate
On October 3, 2024, the Court Ordered that Mr. Ikkurty, Jafia, LLC, Vadim Glozman,
and Nishay Sunan return $100,000 in fees paid to Messrs. Glozman and Sunan. (Dkt. No. 401)
Mr. Glozman delivered a check in the amount of $100,000 in satisfaction of the Court’s Order on
October 15, 2024. The Receiver has deposited those funds into the bank account for the QSF.
II. Receivership Fees and Expenses
The QSF currently holds approximately $ 26,458,386.52 in cash. During the period
August 1, 2024, through October 31, 2024, the Receivership incurred approximately $51,133.75
in expenses, including tax, accounting, legal, claims processing, and website fees that will be
provided with more detail in the Receiver’s Request for Reimbursement of Fees and Expenses.
In addition to those expenses, the Receiver personally paid $28,250.00 to Rhino.fi, the platform
that assisted the CFTC with the recovery of the stolen digital assets, to compensate it for fees and
expenses it incurred freezing and recovering the assets. The Receiver also personally paid for the
assistance of Ankura Consulting in planning for the recovery and securing of the digital assets.
The Receiver will not seek reimbursement of those expenses.
On September 16, 2024, the Court issued an Order (Dkt. 390) approving the Receiver’s
Ninth Request for Payment of Reasonable Compensation. The Receiver has paid the vendors in
accordance with the Court’s Order. The Receiver’s next request for reasonable compensation is
due on November 15, 2024. The Receiver will also post the compensation request to the
Receivership website, which will allow all interested parties an opportunity to be heard and
object.
Case: 1:22-cv-02465 Document #: 410 Filed: 11/01/24 Page 5 of 7 PageID #:5708
assets.
g) Attorneys’ Fees Returned to Receivership Estate
On October 3, 2024, the Court Ordered that Mr. Ikkurty, Jafia, LLC, Vadim Glozman,
and Nishay Sunan return $100,000 in fees paid to Messrs. Glozman and Sunan. (Dkt. No. 401)
Mr. Glozman delivered a check in the amount of $100,000 in satisfaction of the Court’s Order on
October 15, 2024. The Receiver has deposited those funds into the bank account for the QSF.
II. Receivership Fees and Expenses
The QSF currently holds approximately $ 26,458,386.52 in cash. During the period
August 1, 2024, through October 31, 2024, the Receivership incurred approximately $51,133.75
in expenses, including tax, accounting, legal, claims processing, and website fees that will be
provided with more detail in the Receiver’s Request for Reimbursement of Fees and Expenses.
In addition to those expenses, the Receiver personally paid $28,250.00 to Rhino.fi, the platform
that assisted the CFTC with the recovery of the stolen digital assets, to compensate it for fees and
expenses it incurred freezing and recovering the assets. The Receiver also personally paid for the
assistance of Ankura Consulting in planning for the recovery and securing of the digital assets.
The Receiver will not seek reimbursement of those expenses.
On September 16, 2024, the Court issued an Order (Dkt. 390) approving the Receiver’s
Ninth Request for Payment of Reasonable Compensation. The Receiver has paid the vendors in
accordance with the Court’s Order. The Receiver’s next request for reasonable compensation is
due on November 15, 2024. The Receiver will also post the compensation request to the
Receivership website, which will allow all interested parties an opportunity to be heard and
object.
Case: 1:22-cv-02465 Document #: 410 Filed: 11/01/24 Page 5 of 7 PageID #:5708
6
III. Conclusion
In conclusion, the Receiver will continue with efforts to preserve assets while
investigating the existence of other assets. The Receiver respectfully requests that this Court set a
date for the next report to the Court on or before February 1, 2025. Finally, the Receiver will
promptly post this status report to the receivership website.
Dated: November 1, 2024 Respectfully submitted,
Daryl M. Schumacher (6244815)
Kopecky Schumacher Rosenburg LLC
120 N. LaSalle St., Suite 2000
Chicago, IL 60602
Telephone: (312) 380-6556
[email protected]
/s/ Daryl M. Schumacher
Attorney for James L. Kopecky, Receiver for
Defendants Jafia, LLC, Sam Ikkurty a/k/a
Sreenivas I Rao, Ikkurty Capital LLC d/b/a/ Rose
City Income Fund I, Rose City Income Fund II,
LP and Seneca Ventures, LLC
Case: 1:22-cv-02465 Document #: 410 Filed: 11/01/24 Page 6 of 7 PageID #:5709
III. Conclusion
In conclusion, the Receiver will continue with efforts to preserve assets while
investigating the existence of other assets. The Receiver respectfully requests that this Court set a
date for the next report to the Court on or before February 1, 2025. Finally, the Receiver will
promptly post this status report to the receivership website.
Dated: November 1, 2024 Respectfully submitted,
Daryl M. Schumacher (6244815)
Kopecky Schumacher Rosenburg LLC
120 N. LaSalle St., Suite 2000
Chicago, IL 60602
Telephone: (312) 380-6556
[email protected]
/s/ Daryl M. Schumacher
Attorney for James L. Kopecky, Receiver for
Defendants Jafia, LLC, Sam Ikkurty a/k/a
Sreenivas I Rao, Ikkurty Capital LLC d/b/a/ Rose
City Income Fund I, Rose City Income Fund II,
LP and Seneca Ventures, LLC
Case: 1:22-cv-02465 Document #: 410 Filed: 11/01/24 Page 6 of 7 PageID #:5709
7
CERTIFICATE OF SERVICE
I hereby certify that on November 1, 2024, I electronically filed the foregoing
Receiver’s Tenth Status Report with the Clerk of the Court by using the CM/ECF system,
which will provide electronic notice and an electronic link to this document to all counsel of
record.
Dated: November 1, 2024
/s/ Daryl M. Schumacher
Case: 1:22-cv-02465 Document #: 410 Filed: 11/01/24 Page 7 of 7 PageID #:5710
CERTIFICATE OF SERVICE
I hereby certify that on November 1, 2024, I electronically filed the foregoing
Receiver’s Tenth Status Report with the Clerk of the Court by using the CM/ECF system,
which will provide electronic notice and an electronic link to this document to all counsel of
record.
Dated: November 1, 2024
/s/ Daryl M. Schumacher
Case: 1:22-cv-02465 Document #: 410 Filed: 11/01/24 Page 7 of 7 PageID #:5710
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