- CFTC Obtains $31 Million in Restitution for Victims of Forex and Cryptocurrency Scam
- Ichioka promised a 10% return and used the funds for personal luxuries.
- CFTC Partners to Combat Rise of “Pig Slaughter” Crypto Scams
The Commodity Futures Trading Commission (CFTC) has obtained a $36 million judgment against William Koo Ichioka, a New York resident formerly of San Francisco, for orchestrating a fraudulent foreign exchange and cryptocurrency scheme.
The U.S. 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 marks the resolution of the case, which included an earlier permanent injunction barring Ichioka from trading on 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 with false promises that they would quickly receive huge returns on their investments,” said First Assistant U.S. Attorney Patrick Robbins.
Instead of delivering on his promises, Ichioka used investors’ money for personal luxuries such as rent, jewelry, and luxury vehicles.
To further the deception, he created false financial statements and overstated the value of the assets he claimed to manage.
In addition to enforcement actions, the CFTC is addressing the rise of cryptocurrency scams with a new outreach initiative.
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The CFTC’s Office of Customer Outreach and Education has partnered with federal regulators and consumer groups to combat “hog slaughter” scams that have cost Americans billions.
These relationship scams typically begin with unsolicited messages, targeting unsuspecting investors.
Cryptocurrency Market Players
- Bitcoin is down 0.1% over the past 24 hours to trade at $62,988.
- Ethereum is up 1.5% to $2,590.
