Crypto scammer to pay $31 million to victims of fraudulent schemes according to US Court ruling


  • US district court judge orders an alleged crypto scammer to pay $31 million in restitution to victims of fraudulent crypto schemes. 
  • William Koo is required to pay an additional $5 million in civil monetary penalty. 
  • The Commodity Futures Trading Commission published a statement with details of the case on their official website. 

The Commodity Futures Trading Commission published details of a US court ruling against a New York resident who allegedly scammed victims through fraudulent crypto schemes. Judge Vince Chhabria of a US disctrict court ordered William Koo Ichioka to pay $31 million in restitution to victims. 

Crypto scam victims lose billions to fraud

A report from the US Federal Bureau of Investigation (FBI) shows that of total complaints received, crypto-related ones accounted for 10%. In 2023, 69,000 crypto-related complaints were received by the bureau. 

The fraudulent schemes of NY resident William Koo led to nearly $36 million in losses for users. Koo allegedly promised high returns and used customer funds to support his lifestyle. 

The CFTC statement shows that Koo was ordered to pay restitution to fraud victims and an additional $5 million civil monetary penalty to compensate his victims.

Ripple CEO warns users against scams

Ripple CEO Brad Garlinghouse tweeted on September 20, informing users of rampant scams. Garlinghouse reacted to the news of India’s Supreme Court YouTube channel hack and XRP videos, expressing his disappointment. The executive said:

Ripple and execs will NEVER ask you to send us XRP. It’s pathetic to see scammers prey on & exploit innocent crypto users, and the ease at which social media platforms allow it to happen. Stop, spot, avoid – protect yourself.

 


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