A federal judge has ordered a New York man to pay $36 million after he allegedly defrauded cryptocurrency investors by promising unrealistic returns while using their money to finance his luxurious lifestyle.
On September 20, the U.S. Commodity Futures Trading Commission (CFTC) announced that Judge Vince Chhabria mandated William Koo Ichioka to provide $31 million in restitution to his victims, alongside a $5 million civil penalty. The CFTC revealed that Ichioka initiated his fraudulent scheme in 2018, claiming he could deliver 10% returns every 30 business days.
While he did invest some funds in foreign currencies and cryptocurrencies, he mismanaged investors’ money for personal expenses, including rent, luxury items, and expensive cars. This ruling follows a previous injunction in August 2023 that barred him from trading in CFTC-regulated markets.
Regulatory scrutiny on false return promises has intensified recently. For instance, Thomas John Sfraga was charged with wire fraud for claiming he could provide investors with returns of up to 60% in three months. Additionally, Brian Sewell faced SEC charges for misleading students into investing in a hedge fund with inflated return claims.
The trend of increasing financial losses due to crypto scams remains concerning. A report indicated that Americans lost $5.6 billion to cryptocurrency fraud in 2023, a 45% rise from the previous year. The FBI found that those over 60 were particularly vulnerable, accounting for nearly $1.6 billion of the total losses.
The U.S. Department of Justice has sentenced Dwayne Golden, 57, of Pennsylvania to 97 months in prison for orchestrating a fraudulent crypto investment scheme that stole over $40 million from investors.
The first half of 2025 has become the most damaging six-month period in crypto history, with over $2.1 billion stolen across 75+ separate incidents, according to new data.
A new breed of cyber-attack is sweeping through crypto media, exploiting site pop-ups and wallet-connect prompts instead of smart-contract bugs.
CoinMarketCap, one of the most widely used crypto data tracking platforms, is reportedly facing a front-end security breach, with multiple users encountering a suspicious prompt to verify their wallets.