The crypto scammer was fined $36 million by the CFTC for fraud

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A federal judge has ordered William Koo Ichioka to pay more than $36 million in restitution and fines for his involvement in a fraudulent currency and digital asset scheme, according to a announcement by the Commodity Futures Trading Commission (CFTC).

Ichioka is notorious for orchestrating a large-scale fraud, defrauding more than 100 investors out of tens of millions of dollars by trading cryptocurrencies, securities and other investment vehicles.

The order was issued on September 19 by Judge Vince Chhabria of the US District Court for the Northern District of California. Ichioka must pay $31 million in restitution to victims and another $5 million in civil penalties.

The fraud, which began in 2018, involved Ichioka soliciting investment funds under false promises of 10% returns every 30 business days. While some funds were invested in currency and digital goods, Ichioka mixed the money with his personal finances.

He used the funds for personal expenses, including luxury items such as jewellery, watches and luxury vehicles. To hide his activities, Ichioka provided investors with falsified financial documents and bank statements.

In August 2023, Ichioka was barred from trading on any markets regulated by the CFTC and barred from registering with the CFTC following a permanent court order.

In addition, Ichioka faced parallel criminal charges from the Department of Justice, where he pleaded guilty to multiple fraud charges and was sentenced to 48 months in prison. He was also ordered to pay $31 million in restitution and a $5 million fine, in addition to 5 years of supervised release.

The CFTC emphasized the importance of verifying the record of individuals or companies offering financial services and warned the public about common signs of fraud in its Commodity Fraud and Currency Fraud notices. Whistleblowers who report violations may be eligible to receive 10 to 30 percent of monetary penalties collected.

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