CFTC Sues Cash FX Group for $950 Million Forex Investment Scheme Tied to Crypto Trading
The Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Cash FX Group and three individuals for allegedly running a $950 million forex investment scheme tied to crypto trading. The group, led by CEO Huascar Jose Lopez Castillo, promised investors returns of up to 15% per week.
According to the CFTC, the defendants operated a multilevel marketing Ponzi scheme that used new investor funds to pay out fictitious profits to earlier participants. Millions of dollars were allegedly funneled to each of the named defendants personally.
The CFTC claims that actual forex trading activity was minimal, and most of the money was misappropriated. Investors reportedly lost at least $406 million as a result of the alleged scheme.
The lawsuit was filed in the US District Court for the Middle District of Florida on September 25, 2026. The CFTC is seeking restitution, disgorgement, and civil monetary penalties against the defendants.