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CFTC Sues Cash FX Over $950 Million Crypto-Related Forex Scam, Investors Lose at Least $406 Million

On September 26, Cointelegraph reported that the U.S. Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Cash FX Group and three individuals, involving $950 million and elements of cryptocurrency. The defendants include Cash FX and its CEO Huascar Jose Lopez Castillo (Brazil), The Conversion Pros and its CEO Ronald Pope (Oregon), as well as Justin Halladay (Florida). The CFTC stated that the complaint was submitted to the U.S. District Court for the Middle District of Florida on Friday. The agency accuses the defendants of operating a multi-level marketing Ponzi scheme, raising over $950 million under the guise of trading retail forex contracts in a commodity pool, falsely claiming that funds were managed by expert traders, proprietary algorithms, and artificial intelligence, with promises of returns as high as 15% per week. The CFTC pointed out that Cash FX engaged in very little actual forex trading, misappropriating most participants' funds to pay fictitious trading profits with new investments, while funneling millions of dollars to the defendants and providing false accounting statements. Participants have suffered losses of at least $406 million.

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