The US Securities and Exchange Commission (SEC) has charged seventeen individuals involved in a Ponzi scheme through CryptoFX LLC, which defrauded more than 40,000 investors, mostly from the Latino community, of around $300m over two years. The perpetrators had previously been issued with an injunction for offering unregistered crypto assets in mid-September 2022. The SEC alleges that the defendants used the investors' funds to pay early investors and themselves, instead of trading as highlighted to investors. The complexity of the Web3 ecosystem through multi-chain smart contracts makes it possible for fraudsters to prey on unsuspecting investors, and cryptocurrency investors will have to follow reputable and regulated web3 channels to avoid falling victim.