Categories: CRYPTO

CFTC wins $36m victory in California crypto fraud case



New York resident William Koo Ichioka agreed to pay $36 million in a CFTC case alleging cryptocurrency and forex fraud.

According to a Sept. 20 notice, Judge Vince Chhabria of the U.S. District Court for the Northern District of California ordered Ichioka to pay $31 million in investor restitution for a crypto fraud scheme that began in 2018. Judge Chhabria also granted the Commodity Futures Trading Commission a $5 million fine.

Ichioka reportedly began fundraising millions from investors over six years ago, promising a 10% yield every 30 working days. The former San Francisco resident falsified financial statements and bank accounts to support his claims.

The CFTC stated that while Ichioka did invest the funds in digital assets and foreign exchange positions, he also spent investor money on personal luxury expenses. Prosecutors cited high-end apartments, watches, jewelry, and expensive cars funded with money entrusted to Ichioka. The commingling of funds and fraudulent practices meant investors never received returns.

Crypto scrutiny by regulators like the CFTC continues to advance as Capitol Hill debates possible laws overseeing the growing industry. The CFTC recently settled a digital asset derivatives case with Uniswap, the largest decentralized exchange on Ethereum (ETH).

On Sept. 19, Federal prosecutors charged two individuals with a $243 million theft. The two were part of a trio who scammed a Genesis creditor of over 4,000 Bitcoin (BTC).



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