$950 Million Crypto-Linked Forex Scheme Uncovered by CFTC

The US Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Cash FX Group and related defendants, accusing them of running a $950 million Ponzi scheme tied to foreign-exchange investments and cryptocurrency transactions.

The CFTC alleges that the defendants solicited and accepted more than $950 million for the supposed purpose of trading retail foreign currency contracts in a commodity pool. However, it claims they carried out minimal actual forex trading and misappropriated most participant funds.

The agency further alleges that new participant contributions were used to pay fictitious trading profits, while millions of dollars were directed to each defendant and false account statements were provided to investors.