A man accused of lying to clients about cryptocurrency investments and using the funds to buy watches and jewelry instead has been ordered to pay $36 million, with most of the fine going to investors.
Judge Vince Chhabria of the Northern District of California ordered: William Koo Ichioka, 30, must pay $31 million in restitution and a $5 million civil penalty to the victims, the court said. name At the U.S. Commodity Futures Trading Commission on Friday.
Commodity Futures Trading Commission (CFTC) Charged Ichioka was indicted in June 2023 on charges of embezzling funds from a cryptocurrency and forex trading scheme involving bitcoin and ether. The U.S. Attorney’s Office for the Northern District of California and the U.S. Securities and Exchange Commission also filed complaints as part of a parallel action.
Ichioka described himself as someone who “began his exploration at a very young age and has already amassed a multi-million dollar fortune.” He told investors that they could earn 10 percent every 30 trading days if they participated in his commodity pool, according to the judge’s order.
Ichioka used some of the investor money to invest in startups, digital asset products and forex stocks, but he also “combined participant funds with his own funds,” according to the order. He used the money to pay for things like rent, restaurants, bars, taxi fares, gym memberships and luxury vehicles.
Ichioka pleaded I feel guilty According to the U.S. Attorney’s Office, he was indicted in July 2023 on criminal charges including wire fraud, securities and commodities fraud. He was later sentenced to four years in prison in January and ordered to pay a $5 million fine.
The CFTC has been flagging forex scams for the past few years. On Friday, the agency included recommendations on how to spot warning signs and detect scams.
“The CFTC also strongly urges the public to verify that a person or company is registered with the CFTC before investing funds,” the agency said. “If not registered, clients should be cautious about providing funds to that company or individual.”
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