CFTC files charges against men for fraud by investors in the amount of $ 21 million as part of the crypto ponzi program
CFTC files charges against men for fraud by investors in the amount of $ 21 million as part of the crypto ponzi program
The US Commodity Futures Trading Commission (CFTC) has accused William Koo Ichioka of cheating investors by several $ 10 million by claiming to be a dealer for digital assets and foreign exchange (Forex).
According to an official statement, the CFTC submitted a complaint against Ichioka to the US district court for the northern district of California and accused him of having misused investor assets in the amount of over 21 million US dollar to generate new customer funds in order to generate the illusion of profits in a snowball system.
CFTC charges for investor fraud
The raw material regulatory authority said Ichioka recruited millions of more than 100 individuals and companies and promised to make foreign exchange deals with a pool of raw materials that operates as Ichioka Ventures. While Ichioka applied to the services on his website, he claimed that the promised returns matched his track record, since he was a self-made investor who has already earned millions of dollars.
Based on his trading strategies, Ichioka promised the participants of his program every 30 working days. However, he suffered massive losses. In order to hide the losses, he made fake documents available to the participants in order to increase the amount of the funds on the accounts of the raw material interest rate pool, and false account statements. The alleged fraudster also paid the alleged profits with funds from other participants to investors.Despite Ichioka's claims, he actually misused customer funds for personal expenses. He mixed the participants' assets with his own and bought luxury goods such as jewelry, cars and watches.
parallel measures of the SEC and the doj
The CFTC accused Ichioka of operating an "old" snowball system and participating in "garden variety" fraud. The alleged fraudster has proposed a comparison to clarify the Commission's allegations. On the other hand, the authority is aiming for a judicial order to impose trade and registration bans and a fine against Ichioka.
"Investor education and assertive measures are of crucial importance for our efforts to prevent fraudsters from cheating on hard -working investors. Therefore, I strongly encourage all members of the public to keep up to date with possible fraud and abuse in the markets for digital assets by visiting our investor advice. Offer - or both - should offer a more detailed examination and additional care before the transfer of funds, ”said Commissioner Kristin N. Johnson.
In the meantime, the US stock exchange supervision SEC and the Ministry of Justice have initiated parallel studies on Ichioka's approach that will soon be completed..