Cash FX Group and Three Individuals Sued Over $950M Crypto-Linked Forex Scheme

The US Commodity Futures Trading Commission (CFTC) has taken action against Cash FX Group and three individuals in connection with a $950 million foreign-exchange investment scheme linked to cryptocurrency.

The defendants, which include Cash FX CEO Huascar Jose Lopez Castillo of Brazil, The Conversion Pros CEO Ronald Pope of Oregon, and Justin Halladay of Florida, allegedly operated a multilevel marketing Ponzi scheme that solicited and accepted over $950 million for trading retail foreign currency contracts in a commodity pool.

The CFTC claims the defendants falsely promised up to 15% weekly returns, saying funds were handled by expert traders and proprietary algorithms. However, it alleges Cash FX engaged in minimal forex trading and misappropriated most of the participant funds.

According to the agency, millions of dollars were directed to each defendant from new contributions made by participants, who lost at least $406 million. The defendants also provided false accounting statements to participants.

The CFTC's Director of Enforcement, David I. Miller, said in a statement that this case reflects the agency's commitment to addressing fraud wherever it is found.