William Koo Ichioka, 30, has been ordered to pay $36 million in fines and restitution after being found guilty of defrauding investors in a cryptocurrency and forex scheme, according to a ruling from Judge Vince Chhabria of the U.S. District Court for the Northern District of California on Friday.

Ichioka, accused of misappropriating investor funds, was ordered to pay $31 million to his victims and an additional $5 million in civil penalties, the U.S. Commodity Futures Trading Commission (CFTC) confirmed in a statement. The penalties come after the CFTC charged Ichioka in June 2023 for running a fraudulent investment scheme involving cryptocurrency, including Bitcoin and Ether, and foreign exchange (forex) trading.

Ichioka lured investors by falsely promising 10% returns every 30 business days through his commodity pool, claiming to have already amassed a multimillion-dollar fortune. However, according to court documents, he used a significant portion of the funds for personal expenses, including rent, luxury vehicles, restaurants, bars, and gym memberships, while commingling investor money with his own.

In July 2023, Ichioka pleaded guilty to criminal charges, including wire fraud and securities and commodities fraud. He was sentenced to four years in prison in January 2024 and fined an additional $5 million.

The CFTC has been vigilant in addressing fraud in the forex and cryptocurrency markets, issuing advisories on identifying potential scams. The agency urged the public to verify whether individuals or companies are registered with the CFTC before committing any funds.