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, alleging they ran a large foreign-exchange investment scheme tied to crypto. The defendants are accused of selling investors a multilevel-marketing Ponzi structure with promised returns far above anything justified by actual trading activity.
The CFTC alleges that the operation used new participant funds to cover promised or fictitious trading profits rather than genuine trading performance. Prosecutors claim the defendants misrepresented trading methods, including claims involving expert traders, proprietary algorithms, and artificial intelligence.
The regulator estimates participants lost at least $406 million, citing alleged false accounting provided to investors. The CFTC says the scheme relied on inflows from new participants to sustain earlier payouts described as trading gains.