A New York resident has been hit with a massive $36 million penalty for orchestrating a fraudulent crypto scheme that tricked investors with false promises of high returns. According to the United States Commodity Futures Trading Commission (CFTC), the accused, William Koo Ichioka, was ordered by a federal judge to pay $31 million in restitution to his victims, along with an additional $5 million in penalties.

The court revealed that Ichioka began his fraudulent activities in 2018, convincing investors that they would receive 10% returns every 30 business days. While some of the funds were invested in crypto and foreign exchange markets, a significant portion of the money was used to fund his personal expenses, including luxury items, vehicles, and rent.

In August 2023, the court banned Ichioka from participating in any markets regulated by the CFTC, citing his continued misconduct. This recent judgment marks a major victory for regulators targeting false promises of high crypto returns, which have become a growing issue.

The crypto fraud landscape has worsened in recent years. The U.S. Department of Justice and other regulatory bodies have been cracking down on fraudulent schemes that promise unrealistic profits. In 2023 alone, Americans lost $5.6 billion to cryptocurrency-related fraud, a 45% increase from 2022. Elderly investors, particularly those over 60, were most impacted, losing nearly $1.6 billion.

With regulatory actions ramping up, it’s clear that authorities are making a strong effort to hold crypto fraudsters accountable.