CFTC Sues $950M Forex Scheme Linked to Cryptocurrency

The US Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Cash FX Group and three individuals, alleging they ran a $950 million forex-linked investment scheme tied to cryptocurrency.

The defendants allegedly solicited over $950 million from participants by promoting a 'commodity pool' that would trade retail foreign currency contracts. However, the CFTC claims most participant funds were misappropriated rather than used for legitimate trading.

The regulator alleges the group made false statements about how investor money was managed and promised returns of up to 15% weekly. It also claims participants suffered losses of at least $406 million alongside alleged false accounting statements.