CFTC sues Cash FX over alleged $950 million crypto-linked forex scheme
CFTC lawsuit targets Cash FX Group over a $950M crypto-forex scheme See how the alleged fraud used fake gains and MLM payouts to mislead investors
The U.S. Commodity Futures Trading Commission has filed a lawsuit against Cash FX Group and three individuals, alleging they ran a large foreignexchange investment scheme tied to cryptocurrency.
According to the CFTC, the defendants took in more than $950 million by promising retail investors trading profits through a commodity pool, while claiming their funds were managed by expert traders, algorithms, and artificial intelligence. The agency says the operation used a multilevel marketing structure and paid out fake trading gains using money from new participants.
The complaint, filed in federal court in Florida, names Cash FX CEO Huascar Jose Lopez Castillo, The Conversion Pros CEO Ronald Pope, and Justin Halladay. The CFTC also alleges the group carried out little real forex trading, misused investor funds, and provided false account statements. It says investors lost at least $406 million.