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

The U.S. Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Cash FX Group and three individuals for allegedly operating a multilevel marketing Ponzi scheme.

The defendants, who are accused of raising more than $950 million from participants, promoted a 'commodity pool' that claimed to trade retail foreign currency contracts.

However, according to the CFTC, most participant funds were misappropriated and not used for legitimate trading.

The regulator claims that participants suffered losses of at least $406 million, with false accounting statements provided to investors.