The US Commodity Futures Trading Commission (CFTC) has imposed a $36 million fine against forex and digital asset scammer William Koo Ichioka. This development comes amid rising levels of crypto fraud losses over the past year.
Crypto Investment Scammer Gets Jail Sentence And Right
In June 2023, the US Department of Justice sued William Ichioka in court for alleged fraud, false tax returns and stock and commodity fraud. This civil action was based on the CFTC’s original complaint against the defendant.
According to the commodity market regulator, Ichioka launched a fraudulent virtual asset investment scheme in 2018 where he accepted money from unsuspecting investors with the promise of 10% profit every 30 working days. The CFTC investigation revealed that Ichioka invested some of these funds in the forex and crypto markets. However, the defendant had also co-mingled the investors’ money with his personal funds.
In addition, the New York resident also used these funds to settle personal desires in terms of employment, jewelry, and luxury cars. To keep the fraud scheme going, Ichioka continued to declare false asset valuations, and fake account statements.
In August 2023, a US court issued a preliminary injunction against Ichioka that prohibits the defendant from engaging in all markets regulated by the CFTC or violating any rules enforced by the Commodity Exchange Act (CEA) or the CFTC.
A year after Ichioka was indicted, Judge Vince Chhabria of the US District Court for Northern California imposed a $36 million fine against the crypto fraudster, ordering him to pay R31 million in restitution to victims and $5 million in public money. penalty. In addition, Ichioka was ordered to spend 48 months in prison followed by five years of supervised release.
Crypto Fraud Is Always A Big Concern
Despite the phenomenal growth and development of the digital asset ecosystem over the past few years, the presence of hacking, scams, and fraud is still a major source of concern for potential investors.
Recently, Bitcoinist reported that losses due to crypto fraud increased by 45% to $ 5.6 billion in 2023 according to data from the Federal Bureau of Investigation. Interestingly, investment scams like Ichioka’s were responsible for 71% of these reported losses. Therefore, there is a need for improved security solutions and public education about the use and operation of legitimate cryptocurrency.
At the time of writing, the total crypto market is estimated at $2.1 trillion with the market leader, Bitcoin, boasting a value of $63,136 per unit.
Featured image from the Federal Criminal Law Center, chart from Tradingview