Alleged $950M Forex Ponzi Scheme
CFTC Sues Cash FX Group Over Alleged $950 Million Ponzi Scheme
Anonymous
The Commodity Futures Trading Commission has sued Cash FX Group, The Conversion Pros and three people, alleging they ran a multilevel-marketing Ponzi scheme that raised more than $950 million through purported foreign-exchange investments. The complaint says the defendants promised returns of up to 15% a week from trading by experts, algorithms and artificial intelligence, but conducted minimal forex trading and used new participants’ money to pay fictitious profits to earlier participants. The CFTC estimates that participants lost at least $406 million; the operation allegedly involved more than 400,000 accounts, including over 6,000 U.S. accounts that contributed at least $27 million. The agency is seeking restitution, the return of allegedly misappropriated funds, financial penalties, trading and registration bans, and a permanent injunction. The allegations have not been proven in court.
Key Points
1
The complaint says Cash FX told participants that 70% of their contributions would go to forex trading and the remaining 30% would fund an “Academy Program” offering trading education.
2
The CFTC alleges the operation ran from at least June 2019 through December 2023, and that participants could receive “Trade Returns” presented as trading profits and “Pyramid Returns” tied to recruitment.
3
According to the complaint, participants could receive returns of up to twice their original contributions, but had to withdraw existing funds before reinvesting; a 20% withdrawal fee allegedly went toward the company’s commission structure.
4
The CFTC alleges Cash FX issued false account statements to make it appear that trading was generating large profits, and that millions of dollars were paid to each defendant.
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