US Regulator Charges Cash FX in Massive Crypto Ponzi Scheme

The US Commodity Futures Trading Commission (CFTC) has filed charges against Cash FX and its associates, alleging involvement in a massive Ponzi scheme that resulted in losses of at least $406 million.

According to the CFTC, Cash FX and its associates have been operating a pyramid scheme since 2015, promising unusually high returns on investments in cryptocurrencies such as Bitcoin. The scheme allegedly involved recruiting new investors with promises of significant profits, while actual payouts were made from funds invested by later victims.

The total losses attributed to the scheme are estimated at $950 million. The CFTC alleges that Cash FX and its associates used various tactics to conceal their activities, including creating fake websites and misrepresenting the true nature of the investments offered.