CFTC sues Cash FX over $950M Ponzi scheme in crypto
4.1 Regulation The CFTC sued Cash FX Group and others, alleging a $950M Ponzi scheme in forex and crypto. Over $406M in losses are reported. Legal proceedings are ongoing.
The Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Cash FX Group S.A., The Conversion Pros Inc., and several individuals, alleging they operated a multi-level marketing Ponzi scheme disguised as a forex and cryptocurrency investment program. According to the CFTC, the defendants raised over $950 million from more than 400,000 accounts globally, including at least $27 million from over 6,000 U.S. accounts, between June 2019 and December 2023. Participants were promised weekly returns of up to 15% through supposed expert traders, proprietary algorithms, and artificial intelligence. However, the CFTC alleges that only a small portion of the funds was actually used for forex trading, with most new deposits used to pay earlier participants and millions transferred to the defendants. Estimated participant losses are at least $406 million. The CFTC seeks restitution, forfeiture of illegal proceeds, civil penalties, and permanent bans on trading and registration for those involved. The court has not yet ruled on the allegations.
