• Fri. Aug 18th, 2023

CFTC Cracks Down on Crypto Scams

Jul 20, 2023
CFTC Cracks Down on Crypto Scams
Marcel Bich

William Ichioka, a New Yorker accused of running a cryptocurrency Ponzi scheme, entered a guilty plea for the theft accusations on Thursday, and the CFTC sued Justby International Auctions for defrauding clients through a romance scam.

A Man is Accused of Running a $21 Million Crypto Ponzi Scheme

Ichioka Ventures lured new victims with fraudulent paperwork while deceiving investors by making exaggerated claims about their ability to generate huge profits on cryptocurrency. Since Ichioka pleaded guilty to five counts of fraud, the U.S. Attorney’s Office has emphasized how alluring cryptocurrency trading is as a potential source of fraud.

CFTC Accuses a California-Based Company of Engaging in Social Engineering Fraud

The Cunwen Zhu-owned Justby International Auctions is believed to be defrauding customers by pretending to exchange digital assets while taking their money. According to the CFTC, victims of a “romance scam” were led into bogus connections and provided phony websites and details of transactions, leading them to engage in fictitious relationships.

Rising Trend of Crypto Romance Scams

The potential of affectionate scams to persuade victims to invest in cryptocurrencies is becoming more common, and the FBI issued a warning about it earlier this year.

A rise in claims of losses from the digital currency investment scams related to romance is expected in 2023, according to the law enforcement group. FBI Jacksonville Special Agent Sherri E. Onks believes that this increase is related to the growth of online dating.

The hazards of internet dating should be understood, Agent Onks emphasized:

“It’s important to be aware of the potential for exploitation while searching for love or friendship online. It’s crucial to establish boundaries early on, and you should never give funds to someone you haven’t seen.”

The alert from the CFTC also targeted scams involving digital asset romances. The commission cautions members of the public to use caution when evaluating offers to trade cryptocurrencies made by individuals they find online or via dating apps. The FBI’s recommendations are identical to this one.