US: Peter Kambolin sentenced to 2 years for FX and Crypto scam

Rick Steves

Peter Kambolin used the fraudulent gains for personal expenses and transferred funds to foreign accounts in Belarus and Dominica.

Peter Kambolin, a 48-year-old U.S.-Russian national and CEO of Systematic Alpha Management LLC (SAM), was sentenced to two years in prison followed by 18 months of home confinement.

He was also ordered to forfeit about $1.6 million for conducting a “cherry-picking” scheme. This scheme involved misappropriating profitable trades for himself and assigning losses to his investors.

SAM managed over $720 million in assets by 2011

Kambolin’s firm, established in 2007, managed over $720 million in assets by 2011. From January 2019 to November 2021, he engaged in this fraudulent activity. He was a commodity trading advisor and commodity pool operator at the time. He falsely allocated profits and losses from futures trades to benefit his accounts, deceiving his clients.

Kambolin misled clients about SAM’s focus on cryptocurrency futures and foreign exchange futures contracts. In reality, about half of his trading involved equity index futures contracts. This deception affected investors in the U.S. and abroad, depriving them of profitable trades. He used the fraudulent gains for personal expenses and transferred funds to foreign accounts in Belarus and Dominica.

The scheme involved executing trades for pool participants alongside his proprietary accounts, allocating profits and losses in his favor. Kambolin pleaded guilty to one count of conspiracy to commit commodities fraud on October 11, 2023.

This sentencing follows a previous case from May 2023, where the Commodity Futures Trading Commission (CFTC) charged Kambolin and his businesses for profiting off customers’ losses. This history highlights the ongoing efforts by regulatory bodies to combat fraudulent activities in the trading sector, particularly in emerging areas like cryptocurrency futures.

  • Read this next

    Inside View, Uncategorized

    Why retail brokers are launching prime services

    Insights are provided by leading industry experts, including Elina Pedersen, Co-CEO & CRO of Your Bourse; Andrew Saks, Chief Product Officer at TraderEvolution; Natalia Zakharova, Head of Business Development at FXOpen; and Jay Mawji, CEO of Infinox.

    Institutional FX

    Cboe to launch MSCI-based options and volatility indices

    “We are excited to expand our Cboe-MSCI toolkit with additional index options and volatility indices – an enhancement that will not only broaden our customers’ product choice, but also enrich the ways they interact with and analyze the global markets.”


    Traxys taps Quantifi for risk management in commodities trading

    “We wanted to take a more sophisticated approach to risk management and have a consolidated view of risk exposures across our global operating model. Quantifi was our preferred choice as it has a track record of success in the commodities markets.”

    Digital Assets

    Startale Labs Secures Funding for Web3 Expansion

    Startale Labs, a leader in Japan’s Web3 development, including Astar Network and Startale Web3 Cloud, has raised an additional $3.5m from UOB Venture Management and Samsung Next. This seed extension round boosts their total seed funding to $7m, following a $3.5m investment from Sony Network Communications in June 2023.

    Retail FX acquires South African broker Ubutyebi Financial Services, the multi-regulated financial services provider, has made a strategic move to expand its presence in Africa by acquiring Ubutyebi Financial Services, a licensed Financial Service Provider (FSP) in South Africa regulated by the Financial Sector Conduct Authority (FSCA).

    Digital Assets

    Hong Kong advances legislation on stablecoins and crypto trading

    Hong Kong is moving forward with legislation to regulate stablecoins and crypto over-the-counter (OTC) trading in the latest effort to develop a legal framework to service the city’s digital-asset industry.

    Digital Assets

    Do Kwon to be extradited to US as South Korea request overturned

    Terraform Labs co-founder Do Kwon is set to be extradited to the United States to face fraud charges related to massive losses suffered by U.S. investors due to its algorithmic stablecoin collapse.

    Retail FX

    Prop firm Instant Funding pauses US accounts, citing ThinkMarkets ban

    Proprietary trading firm Instant Funding has become the latest retail platform to halt onboarding new US clients, citing a recent decision by their partner broker, ThinkMarkets.

    Retail FX

    Funded Trader and Alpha Capital switch to cTrader, Lark Funding to DXTrade

    Proprietary trading firms Lark Funding and Alpha Capital have both announced changes to their operations that mainly affect their business with US clients.