Crypto Trader Fined $36 Million for Defrauding Investors A California court has ordered cryptocurrency trader William Koo Ichioka to pay a $36 million fine for perpetrating a cryptocurrency and foreign exchange fraud scheme. The ruling mandated that $31 million of the fine be distributed to defrauded investors. The US Commodity Futures Trading Commission (CFTC) initially brought charges against Ichioka, accusing him of misappropriating investor funds. The investigation revealed that Ichioka had solicited investments from 100 individuals, promising high returns through cryptocurrency investments. Ichioka claimed to have pooled investor funds and invested them in Bitcoin and Ethereum. However, evidence showed that he had used the money for personal expenses, including luxury car purchases and rent payments. This case highlights the importance of due diligence and the risks associated with unregulated cryptocurrency investments. Investors are advised to thoroughly research and understand the individuals and platforms they entrust with their funds.