CFTC fines New York resident $36 million for alleged crypto fraud scheme

The United States CFTC has fined New York resident William Koo Ichioka $36 million for allegedly defrauding cryptocurrency investors with promises of high returns and using the funds for personal expenses. According to a Sept. 20 announcement, the CFTC ordered Ichioka to “pay $31 million in restitution” to victims and an additional $5 million in civil penalties for operating a fraudulent foreign exchange (forex) and cryptocurrency scheme. The CFTC said Ichioka launched the scheme in 2018, accepting funds from investors and falsely promising “a 10% return every 30 business days.” It further alleges that while Ichioka did invest “some funds” in foreign currencies and cryptocurrencies as promised to investors, he “commingled” investors’ money with his own for his own personal expenses, including “rent on a personal residence, jewelry including watches, and luxury cars.” The decision comes more than a year after the court entered a “preliminary consent order for a permanent injunction against Ichioka” in August 2023. At the time, the regulator prohibited him from “trading in any CFTC-regulated market and from registering with the CFTC.” (Cointelegraph)