William Koo Ichioka, who lives in New York, was fined $36 million by a federal judge for scamming crypto investors over a five-year span. A statement from the U.S. Commodity Futures Trading Commission (CFTC) on September 20 said that Ichioka, who promised investors high returns, used the funds to pay for his own costs.
Judge Vince Chhabria told Ichioka to pay $31 million to victims as reparations and an extra $5 million as civil fines. Ichioka’s scam began in 2018 when he told investors they would get 10% back every 30 business days when they didn’t.
CFTC Orders Ichioka To Repay
Some of the funds was put into cryptocurrency and foreign exchange markets, but he is said to have spent most of it on things like rent, jewelry, and expensive cars for himself. This decision comes after a court order in August 2023 that said Ichioka could never again trade in any markets controlled by the CFTC.
The case shows that crypto theft is becoming more common. This year, the U.S. Department of Justice charged crypto figure Thomas John Sfraga with wire theft for saying that investors would get up to 60% back in three months.
The Securities and Exchange Commission also charged crypto trading teacher Brian Sewell in February with tricking students into putting $1.2 million into a hedge fund that said it would give them high returns.
Crypto-related theft has been on the rise. In 2023, Americans lost $5.6 billion, which is 45% more than the previous year. According to a study from the FBI’s Internet Crime Complaint Center, people over 60 were the ones who lost the most funds—$1.6 billion.
