CFTC Sues Cash FX Group Over $950M Crypto-Linked Forex Scheme

The US Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Cash FX Group and three individuals over a $950 million cryptocurrency-linked foreign exchange scheme.

The CFTC alleges that the defendants raised more than $950 million from participants by promoting a 'commodity pool' to trade retail foreign currency contracts, while misrepresenting how investor money was managed and the returns investors were promised.

According to the CFTC, most participant funds were misappropriated rather than used for legitimate trading, with the defendants allegedly directing millions of dollars to themselves. The agency also claims that participants suffered losses of at least $406 million, alongside alleged false accounting statements.