Victims of Forex and Crypto Scam to Receive $31 Million in Restitution Secured by CFTC
The Commodity Futures Trading Commission (CFTC) has secured a $31 million restitution for victims of a forex and crypto scam orchestrated by William Koo Ichioka. Ichioka, a New York resident formerly of San Francisco, promised 10% returns to investors but used their funds for personal luxuries.
The US District Court for the Northern District of California has ordered Ichioka to pay $31 million in restitution to defrauded investors and an additional $5 million civil monetary penalty. This judgment marks the resolution of the case, which also included a permanent injunction banning Ichioka from trading in CFTC-regulated markets.
Starting in 2018, Ichioka solicited investment funds by promising a 10% return every 30 business days. Instead of delivering on his promises, he used the money for rent, jewelry, and luxury vehicles, while creating false financial statements to deceive investors about the value of assets he claimed to manage.
In addition to enforcement actions, the CFTC is partnering with federal regulators and consumer groups to combat “pig butchering” scams in the crypto space through a new outreach initiative.
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The CFTC’s Office of Customer Outreach and Education is working with partners to address these relationship-based frauds that typically start with unsolicited messages targeting unsuspecting investors.
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