CFTC decided to complicate the life of crypto scammers
Date: 2023-06-26 Author: Karina Ziganova Categories: CRYPTO PAYMENTS
The US Commodity Futures Trading Commission (CFTC) is actively involved in the fight against crypto fraudsters. On Thursday, the Department of Justice reported that New Yorker William Ichioka pleaded guilty to several fraud charges related to organizing a cryptocurrency Ponzi scheme.
At the same time, the CFTC announced that it had filed a civil lawsuit against Justby International Auctions. The regulator claims that the company pulled off a romantic scam, as a result of which it robbed customers of $ 1.3 million
Investors have invested millions of dollars in the Ponzi scheme
On June 22, the U.S. Attorney's Office released details of the case against Ichioki for the Northern District of California. The press release reveals that the venture capital fund he created, Ichioka Ventures, forged documents to demonstrate huge profits from cryptocurrency trading. As a result, gullible victims of the scammer invested millions of dollars in the company.
Commenting on this case, the representative of the US Attorney's Office, Abraham Simmons, mentioned the high profits that are often associated with cryptocurrency trading.
"The appeal of using cryptocurrencies to make huge profits in a short time creates fertile ground for scammers who take advantage of the negligence of victims," he said.
According to Simmons, Ichioka persuaded investors to trust his fake company with a lot of money, when in fact he showed them fake trade results.
The defendant pleaded guilty to five counts of fraud and must appear in federal court for sentencing. The CFTC said it is seeking compensation for the victims, as well as a monetary fine and a permanent trade ban for Ichioki.
CFTC accuses California-based company of social engineering fraud
In addition, the CFTC accused California resident Kunwen Zhu and his company, Justby International Auctions, of defrauding at least 29 people of more than $1.3 million. After that, he lured money from them to trade cryptocurrencies and appropriated it for himself.Like Ichioka, Zhu provided fake reports on the profitability of trades to those who fell for his bait. And his company has developed an entire trading platform to convince victims of the legitimacy of their action
Cryptocurrency scams are on the rise
Earlier this year, the FBI warned US residents that scammers are increasingly using romance scams to pressure victims into investing in cryptocurrencies.
The law enforcement agency said it expects an increase in the number of reports of losses from crypto investment scams in 2023. Commenting on this trend, Sherry E. Onx, an FBI special agent in Jacksonville, attributed it to the rise of online dating.
"Whether you're looking for love or friendship online, first of all, make sure you understand the risk of being used. Remember that a scammer will always end up asking you for something, so set a boundary early on and never send money to someone you've never met," the statement said.
The CFTC has also issued a warning about the flourishing of such fraudulent scams. Like the FBI, the Commission advises avoiding offers to trade cryptocurrencies coming from people they meet through dating apps or social media.
