Cash FX Group S.A. Faces CFTC Lawsuit Over Alleged $950M Cryptocurrency Linked Forex Fraud

Cash FX Group S.A., a Panama-based firm, and several associated individuals are facing a lawsuit from the US Commodity Futures Trading Commission (CFTC) over alleged cryptocurrency linked forex fraud.

The CFTC alleges that Cash FX solicited funds from the public, including US residents, between June 2019 and December 2023. Participants were told their money would be placed in a commodity pool and traded by skilled professionals, proprietary algorithms, and artificial intelligence.

The CFTC claims that nearly all participant money was diverted, with new contributions used to pay earlier participants amounts presented as trading profits. This is a classic Ponzi structure, where false account statements were issued to create the appearance of consistent gains.

Cash FX conducted only negligible forex trading, using less than 1 percent of incoming funds for actual market activity. The firm was not registered as a commodity pool operator, and participant assets were not kept segregated from operators' accounts.