Cash FX Group Sued by CFTC Over Alleged $950M Crypto Ponzi Scheme

The Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Cash FX Group and three individuals, alleging they operated a multilevel marketing Ponzi scheme involving cryptocurrency. The defendants are accused of soliciting over $950 million for the purpose of trading retail foreign currency contracts in a commodity pool.

The CFTC alleges that Cash FX falsely claimed to use expert traders, proprietary algorithms, and artificial intelligence to generate up to 15% weekly returns. However, the agency claims that minimal forex trading took place, and most participant funds were misappropriated.

The defendants allegedly used new contributions from participants to pay fictitious trading profits while directing millions of dollars to each defendant. Cash FX also provided false accounting statements to participants, who lost at least $406 million.

CFTC Director of Enforcement David I. Miller stated, 'The Division of Enforcement has continued to refocus on its core mission of protecting the public from fraud and manipulation.' The agency's actions reflect its commitment to addressing fraud wherever it finds it.