CFTC Orders William Koo Ichioka to Pay $31M to Fraud Victims, $5M Fine

The Commodity Futures Trading Commission (CFTC) last week announced significant monetary relief against William Koo Ichioka for acts of fraud.

Judge Vince Chhabria of the U.S. District Court for the Northern District of California issued the order mandating Ichioka to pay $31 million in restitution to victims of fraud. Along with this, he faces an additional $5 million civil monetary penalty.

The decision follows an initial consent order entered by the court on Aug. 14, 2023. That order prohibited Ichioka from committing future violations of the Commodity Exchange Act (CEA) and CFTC regulations. It also banned him from trading in any CFTC-regulated markets and from registering with the CFTC.

Ichioka’s fraudulent scheme began in 2018 when he accepted investment funds by falsely promising participants a 10% return every 30 business days. “Although Ichioka invested some funds in forex and digital asset commodities, he commingled participant money with his own funds and used participant funds for his own personal expenses, including, among other things, rent for his personal residence, jewelry, including watches, and luxury vehicles,” the CFTC said.

To further deceive his investors, Ichioka generated false financial documents and provided them with misleading account statements, which overstated the value of the assets he managed.

Legal Consequences Mount Amid Broader Crackdown on Crypto Fraud

William Koo Ichioka’s legal troubles extend beyond the CFTC’s actions. On June 22, 2023, the Department of Justice charged him with multiple counts, including wire fraud and securities fraud, all stemming from the same fraudulent activity outlined in the CFTC complaint.

He pled guilty to these charges on the same day and was sentenced to 48 months in prison. He was also given an additional five years of supervised release. The court ordered him to pay $5 million in fines and $31,330,715.86 in restitution to his victims.

This isn’t the first time an incident of this sort happened in the crypto world. The Shib Daily reported previously that Federal prosecutors officially charged two individuals in connection with a cryptocurrency theft exceeding $230 million. A related coverage showed the OFAC imposing sanctions on Ly Yong Phat, a Cambodian businessman and ruling party senator.

In order to help safeguard investors from similar schemes, the CFTC released several Fraud Advisories, including specific advisories on Commodity Pool Fraud and Forex Fraud. The agency strongly advises individuals to verify the registration of any individual or company with is listings before investing funds.

Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

Post Views: 99