CFTC Busts California Man Running $21M Digital Asset Ponzi Scheme

Key Points:

• William Koo Ichioka has been charged by the CFTC for soliciting tens of millions of dollars from over 100 people to trade digital asset commodities.
• Ichioka conducted a fraudulent operation from 2018 to 2021, stealing more than $21 million in participant money and using it for personal purposes typical of Ponzi schemes.
• Ichioka has admitted to the allegations, and restitution for victims, civil monetary penalties, and permanent injunctions have been sought by the CFTC.

The Commodities Futures Trading Commission (CFTC) charged William Koo Ichioka in the United States District Court for the Northern District of California for soliciting tens of millions of dollars from more than 100 people and businesses to trade digital asset commodities.

Ichioka pledged to utilize client funds to engage in the retail foreign exchange market (FX) via a commodities interest pool called “Ichioka Ventures,” according to the statement.

The United States Attorney’s Office for the Northern District of California has also filed a concurrent criminal complaint against Ichioka on charges including wire fraud and securities and commodities fraud. In addition, the Securities and Exchange Commission (SEC) has filed a “parallel action.”

Ichioka stole more than $21 million in participant money and exploited freshly entering customers’ cash to create the appearance of profits for existing customers while concurrently appropriating customer funds for personal purposes, which is typical of Ponzi schemes.

According to the CFTC, Ichioka conducted a fraudulent operation from 2018 to 2021 in which he received money from over a hundred people to trade digital asset commodities such as Bitcoin (BTC) and Ethereum (ETH), promising a 10% return within 30 business days. Ichioka further claimed that participants’ monies could be readily withdrawn or reinvested.

Ichioka has admitted to the allegations, and the CFTC has requested full restitution for the victims. A civil monetary penalty, perpetual trading and registration restrictions, and permanent injunctions have also been sought by the CFTC against Ichioka.

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