In June 2023, the CFTC charged Ichioka with misappropriating cryptocurrencies and foreign exchange funds such as Bitcoin and Ethereum. The U.S. Attorney's Office for the Northern District of California and the U.S. Securities and Exchange Commission also filed lawsuits as part of parallel actions.
Ichioka, who claimed to have “started his exploration early and has amassed a multi-million dollar fortune,” told investors that by participating in his commodity pool they would receive a 10 percent return every 30 business days, according to the judge’s order.
Ichioka used some of the investors’ money to invest in startup stocks, digital asset commodities and foreign exchange, but also “commingled participants’ funds with his own funds.” He used the money to pay for rent, restaurants, bars, taxis, gym memberships and luxury cars, according to the order.
