A crypto scammer named William Koo Ichioka has been sentenced to prison and fined $36 million for running a fraudulent investment scheme.
The Scam
Ichioka promised investors a 10% profit every 30 days on their investments in virtual assets. However, he used the money for his own personal expenses, including rent, jewelry, and fancy cars. He also lied about the value of the investments and provided fake account statements to keep the scam going.
The Verdict
In June 2023, the US Department of Justice filed a lawsuit against Ichioka for wire fraud, false tax returns, and securities and commodities fraud. The Commodity Futures Trading Commission (CFTC) also filed a complaint against him.
In August 2023, a court ordered Ichioka to stop trading in CFTC-regulated markets.
Finally, in August 2024, a judge sentenced Ichioka to 48 months in prison followed by five years of supervised release. He was also ordered to pay a $36 million fine, with $31 million going to victims and $5 million as a civil penalty.
Crypto Fraud on the Rise
Crypto fraud is a growing problem. In 2023, losses from crypto fraud reached $5.6 billion, a 45% increase from the previous year. Investment scams like Ichioka’s were responsible for 71% of these losses.
This highlights the need for better security solutions and public education about legitimate cryptocurrency use.
