The US Commodity Futures Trading Commission (CFTC) has won a $36 million fine against William Koo Ichioka, a scammer involved in forex and digital asset fraud. This case adds to the increasing reports of crypto fraud over the past year.

In June 2023, the US Department of Justice charged Ichioka with wire fraud, false tax returns, and securities and commodities fraud. The lawsuit stemmed from an initial complaint by the CFTC, accusing Ichioka of running a fake investment scheme since 2018. He promised investors 10% profit every 30 working days, but the CFTC found that while some funds were invested in forex and crypto, Ichioka also used much of the money for personal expenses, such as luxury items and extravagant purchases.

To maintain his fraudulent operation, Ichioka regularly falsified account statements and misrepresented asset values. In August 2023, the court issued an injunction, barring him from engaging in CFTC-regulated markets and violating any rules under the Commodity Exchange Act.

A year later, Judge Vince Chhabria of the US District Court for Northern California ruled that Ichioka must pay $36 million. This includes $31 million in restitution to victims and $5 million as a civil penalty. In addition, Ichioka was sentenced to 48 months in prison, followed by five years of supervised release.

Despite the ongoing growth of the digital asset market, fraud and scams remain a major concern. According to recent reports, crypto fraud losses increased by 45% in 2023, reaching billions in total. Investment schemes like Ichioka’s were responsible for a large share of these losses, highlighting the need for stronger security measures and public education on safe cryptocurrency practices.

As the crypto market continues to grow, with Bitcoin as a dominant force, the importance of safeguarding investors from scams and fraud remains critical.