$950M Forex Ponzi Scheme Unraveled by CFTC: Cash FX Group and CEO Charged

The U.S. Commodity Futures Trading Commission (CFTC) has filed a civil enforcement complaint against Cash FX Group S.A. and its CEO, Huascar Jose Lopez Castillo, alleging they ran a multilevel-marketing Ponzi scheme that took in over $950 million from retail foreign exchange trading.

The CFTC alleges the firm promised returns of up to 15% per week, but conducted minimal actual forex trading and misappropriated nearly all participant funds.

Participants lost at least $406 million, according to the CFTC. The agency claims Lopez controlled the wallets that received participant bitcoin and routed funds to personal accounts, including one held by his wife or girlfriend.