Federal Court Imposes IDR 547 Billion Fine On New York Man For Crypto Fraud

JAKARTA - A major fraud case involving William Koo Ichioka, a New York resident. The United States federal court fined Ichioka over 36 million US Dollars (approximately IDR 547 billion) for its involvement in crypto and forex investment schemes. This case was in the spotlight when the Commodity Futures Trading Commission (CFTC) tightened its oversight of the crypto market.

Reporting from Crypto News, Judge Vince Chhabria of the US District Court for the Northern District of California ruled that Ichioka must pay 31 million US Dollars (approximately IDR 470 billion) in compensation to victims and an additional 5 million US Dollars (approximately IDR 75 billion) as a civil fine. Ichioka was found guilty of fraud that runs from 2018 to 2021, in which it promises unrealistic return of investment, which is 10% every 30 working days.

The lucrative promises managed to attract many investors, but unfortunately, most of the funds were not invested properly. Most of the funds are instead used to fulfill his lifestyle, including buying luxury items such as watches, jewelry, expensive vehicles, and paying rent for his place of life.

Although some of the funds were invested in forex and crypto, Ichioka mixes investment funds with his personal accounts. He also issued false financial reports and account statements to deceive investors, leading them to believe that their investment is developing. This classic Ponzi scheme allows Ichioka to continue operating for several years, until regulatory attention gets tighter.

In addition to the heavy fine, Ichioka was sentenced to 48 months in prison, followed by a five-year probationary period. The case underscores the efforts of the CFTC and other regulatory institutions, such as the Securities and Exchange Commission (SEC) and the US Department of Justice (DOJ), to take action against individuals who mislead investors in increasingly difficult markets.