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

The U.S. Commodity Futures Trading Commission (CFTC) has filed a federal lawsuit against Cash FX Group and three individuals for operating a large foreign-exchange investment scheme tied to cryptocurrency.

According to the CFTC, the defendants collected over $950 million from investors who were promised weekly returns of up to 15% through a commodity pool. However, the regulator alleges that most of the participant funds were misappropriated and used to fund earlier payouts described as trading gains.

The complaint also claims that the defendants provided participants with false accounting statements, leading to losses of at least $406 million for investors.