Fraudster Ordered to Pay $36M for Forex and Digital Asset Scam

A federal court has ordered New York resident William Koo Ichioka to pay over $36 million for his involvement in a forex and digital asset fraud scheme

William Koo Ichioka, a New York resident, has been ordered by a federal court to pay over $36 million for his role in a forex and digital asset fraud scheme, according to an announcement made on Friday by the Commodity Futures Trading Commission (CFTC). The regulator stated:

The order mandates that Ichioka pay $31 million in restitution to defrauded victims and a $5 million civil monetary penalty in connection with his fraudulent foreign currency (forex) and digital asset fraud scheme.

This ruling comes after Ichioka admitted to defrauding investors by fabricating financial documents and making false promises regarding investment returns in digital assets.

In addition to the financial penalties, Ichioka received a 48-month prison sentence for related criminal charges, including commodities fraud and wire fraud.

Ichioka's scheme, which began in 2018, involved misleading investors by promising a guaranteed 10% return every 30 business days. While some of the funds were invested in forex and digital asset commodities, Ichioka personally misappropriated the majority of the participant money.

The CFTC noted:

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.

To sustain the fraud, he overstated the value of his investments through false account statements and other financial documents.