Federal Court Fined New York Man $36 Million for Crypto Fraud
Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors. His work has appeared in...
In a recent case, a U.S. federal court has ordered William Koo Ichioka, a New York resident, to pay over $36 million in restitution and penalties after being found guilty of orchestrating a fraudulent cryptocurrency and foreign exchange investment scheme.
The Commodity Futures Trading Commission (CFTC), which has tightened its grip on the cryptocurrency market, led the case.
Judge Vince Chhabria of the U.S. District Court for the Northern District of California ordered Ichioka to pay $31 million in restitution to victims and an additional $5 million in civil penalties.
The court found Ichioka guilty of running a deceptive scheme between 2018 and 2021. In this scheme, he lured investors with promises of guaranteed returns—specifically, 10% every 30 business days.
The fraudulent promises attracted substantial investment, which Ichioka partially used for foreign currency and digital asset trading.
However, much of the funds were funneled into his lifestyle, with expenditures on luxury items such as watches, jewelry, high-end vehicles, and rent for his residence.
The court’s decision follows an earlier consent order from August 2023, which permanently banned Ichioka from trading in markets regulated by the CFTC and prohibited him from registering with the commission in the future.
In addition to the restitution order, Ichioka will also serve 48 months in prison, followed by five years of supervised release.
Federal Court Orders New York Man to Pay Over $36 Million for Forex and Digital Asset Fraud: https://t.co/oVyXQy3zkX
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