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The Commodity Futures Trading Commission (CFTC) has named the perpetrator of defrauding investors of tens of millions of dollars and creating a new "classic Ponzi scheme".
The commission filed a lawsuit in the Northern District Court of California against William Koo Ichioka. The regulator accuses the American of embezzling $21 million of investors' funds. The defendant, according to the CFTC, introduced himself as a cryptocurrency and forex trader, using the funds of depositors at his discretion, paying profits to old investors at the expense of new ones.
According to the CFTC, over 100 individuals and legal entities participated in the scheme, the organizer of the pyramid created a common pool called Ichioka Ventures and stated on its website that it was an experienced trader who had already earned millions of dollars. The scammer promised to pay 10% of the deposit every 30 business days to the pool participants. But, after losing a significant amount of funds, he began to forge statements and balances of users, and pay out profits at the expense of new investors. At the same time, he bought luxury cars, jewelry and expensive watches for himself.
The fraudster has already offered the regulator an amicable agreement to drop the charges. The CFTC is seeking a monetary fine for Ichioki and an injunction against trading. The U.S. Securities and Exchange Commission (SEC) and the U.S. Department of Justice said they had launched their own investigation into William Koo Ichioki.
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A U.S. regulator has fined a New Yorker $36 million for allegedly defrauding cryptocurrency investors by promising high returns and using the funds to support his lavish lifestyle.
According to a Sept. 20 filing, the Commodity Futures Trading Commission (CFTC) ordered William Koo Ichioka to "pay $31 million in compensation" to the victims and an additional $5 million civil monetary penalty for operating a fraudulent foreign exchange (forex) and cryptocurrency exchange scheme.
CFTC Notes Falsely Promising Significant Profits
The CFTC said Ichioka launched the scheme in 2018 by accepting money from investors and falsely promising them "10% returns every 30 business days."
It went on to claim that while Ichioka did invest "some funds" in foreign currency and cryptocurrency, as he had promised investors, he had "mixed" investors' money with his own money, using it for his personal expenses, including "the rent of his personal residence, jewelry, including watches, and luxury cars."
The decision comes more than a year after the court "issued an initial permanent ban order on Ichioka" in August 2023. At the time, the regulator banned him from "trading in any markets regulated by the CFTC and registering with the CFTC." ».
Regulators Prioritize Fighting False Promises of Money.
Back Recently, regulators have focused on people falsely promising high cryptocurrency returns.On May 18, the Department of Justice (DoJ) charged cryptocurrency figure Thomas John Sfraga with wire fraud, promising that "victims will see a return on their investment of 60% in three months".
Meanwhile, in February, cryptocurrency trading instructor Brian Sewell faced accusations from the Securities and Exchange Commission (SEC) for tricking 15 students into investing a total of $1.2 million in a hedge fund that promised to generate profits.
On the subject: Arrests of two pig butchers: feds return $ 5 million, former Kansas bank CEO jailed.
The amount of money lost by cryptocurrency investors to scammers continues to grow every year.
On September 9, it was reported that Americans lost $5.6 billion to cryptocurrency scams in 2023, a 45% increase from 2022. Citing a report by the U.S. Federal Bureau of Investigation (FBI) Internet Crime Complaint Center, cryptocurrency-related complaints account for 10%. of the total amount of funds received, but almost 50% was lost that year.
The report states that of the 69,000 cryptocurrency-related complaints received by the FBI in 2023, the most common victims were people over 60 years old, which amounted to almost $1.6 billion in losses.
The commission filed a lawsuit in the Northern District Court of California against William Koo Ichioka. The regulator accuses the American of embezzling $21 million of investors' funds. The defendant, according to the CFTC, introduced himself as a cryptocurrency and forex trader, using the funds of depositors at his discretion, paying profits to old investors at the expense of new ones.
According to the CFTC, over 100 individuals and legal entities participated in the scheme, the organizer of the pyramid created a common pool called Ichioka Ventures and stated on its website that it was an experienced trader who had already earned millions of dollars. The scammer promised to pay 10% of the deposit every 30 business days to the pool participants. But, after losing a significant amount of funds, he began to forge statements and balances of users, and pay out profits at the expense of new investors. At the same time, he bought luxury cars, jewelry and expensive watches for himself.
The fraudster has already offered the regulator an amicable agreement to drop the charges. The CFTC is seeking a monetary fine for Ichioki and an injunction against trading. The U.S. Securities and Exchange Commission (SEC) and the U.S. Department of Justice said they had launched their own investigation into William Koo Ichioki.
------------
A U.S. regulator has fined a New Yorker $36 million for allegedly defrauding cryptocurrency investors by promising high returns and using the funds to support his lavish lifestyle.
According to a Sept. 20 filing, the Commodity Futures Trading Commission (CFTC) ordered William Koo Ichioka to "pay $31 million in compensation" to the victims and an additional $5 million civil monetary penalty for operating a fraudulent foreign exchange (forex) and cryptocurrency exchange scheme.
CFTC Notes Falsely Promising Significant Profits
The CFTC said Ichioka launched the scheme in 2018 by accepting money from investors and falsely promising them "10% returns every 30 business days."
It went on to claim that while Ichioka did invest "some funds" in foreign currency and cryptocurrency, as he had promised investors, he had "mixed" investors' money with his own money, using it for his personal expenses, including "the rent of his personal residence, jewelry, including watches, and luxury cars."
The decision comes more than a year after the court "issued an initial permanent ban order on Ichioka" in August 2023. At the time, the regulator banned him from "trading in any markets regulated by the CFTC and registering with the CFTC." ».
Regulators Prioritize Fighting False Promises of Money.
Back Recently, regulators have focused on people falsely promising high cryptocurrency returns.On May 18, the Department of Justice (DoJ) charged cryptocurrency figure Thomas John Sfraga with wire fraud, promising that "victims will see a return on their investment of 60% in three months".
Meanwhile, in February, cryptocurrency trading instructor Brian Sewell faced accusations from the Securities and Exchange Commission (SEC) for tricking 15 students into investing a total of $1.2 million in a hedge fund that promised to generate profits.
On the subject: Arrests of two pig butchers: feds return $ 5 million, former Kansas bank CEO jailed.
The amount of money lost by cryptocurrency investors to scammers continues to grow every year.
On September 9, it was reported that Americans lost $5.6 billion to cryptocurrency scams in 2023, a 45% increase from 2022. Citing a report by the U.S. Federal Bureau of Investigation (FBI) Internet Crime Complaint Center, cryptocurrency-related complaints account for 10%. of the total amount of funds received, but almost 50% was lost that year.
The report states that of the 69,000 cryptocurrency-related complaints received by the FBI in 2023, the most common victims were people over 60 years old, which amounted to almost $1.6 billion in losses.
