The Commodity Futures Trading Commission (CFTC) has won a $36 million judgment against William Koo Ichioka, a New York resident formerly of San Francisco, for orchestrating a fraudulent foreign currency and crypto scheme.
The US District Court for the Northern District of California ordered Ichioka to pay $31 million in restitution to defrauded investors and an additional $5 million civil monetary penalty.
The order, issued marks the resolution of this case, which included a prior permanent injunction banning Ichioka from trading in CFTC-regulated markets.
Ichioka’s scheme, which began in 2018, involved soliciting investment funds from participants with the promise of a 10% return every 30 business days.
“Ichioka lured his victims by falsely promising they would receive huge returns quickly on their investments,” said First Assistant United States Attorney Patrick Robbins.
Instead of fulfilling his promises, Ichioka used investor money for personal luxuries such as rent, jewellry, and luxury vehicles.
To further the deception, he created false financial statements and overstated the value of assets he claimed to manage.
In addition to enforcement actions, the CFTC is tackling the rise of crypto scams through a new outreach initiative.
The CFTC’s Office of Customer Outreach and Education has partnered with federal regulators and consumer groups to combat “pig butchering” scams, which have cost Americans billions.
These relationship-based frauds typically start with unsolicited messages, targeting unsuspecting investors.
Crypto market movers
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