CFTC Charges Cash FX Group in $950 Million Forex Ponzi Scheme

According to BlockchainReporter, the U.S. Commodity Futures Trading Commission (CFTC) filed a civil enforcement complaint on September 25 against Cash FX Group S.A. and its chief executive, Huascar Jose Lopez Castillo. The agency accused them of operating a multilevel-marketing Ponzi scheme that amassed more than $950 million for purported retail foreign exchange trading within a commodity pool. Filed in the U.S. District Court for the Middle District of Florida, the complaint also names The Conversion Pros, Inc., its CEO Ronald Pope, and Florida promoter Justin Halladay.

BlockchainReporter noted the CFTC alleged that Cash FX promised returns of up to 15 percent a week through expert traders, proprietary algorithms, and artificial intelligence. However, the firm allegedly conducted minimal forex trading, misappropriated nearly all participant funds, and used new contributions to pay fictitious profits while routing millions to defendants. Participants reportedly lost at least $406 million. The CFTC is seeking restitution, disgorgement, civil monetary penalties, trading and registration bans, and a permanent injunction, as reported by BlockchainReporter.