CFTC sues Cash FX Group over alleged $950M crypto-linked Ponzi scheme

CFTC sues Cash FX — The U.S. Commodity Futures Trading Commission has filed a lawsuit against Cash FX Group and three individuals, alleging they operated a $950 million foreign-exchange Ponzi scheme that involved cryptocurrency.

The complaint, filed in a Florida federal court, accuses the defendants of soliciting funds for a purported commodity pool to trade retail forex contracts. The CFTC alleges they falsely promised weekly returns of up to 15% using expert traders, proprietary algorithms, and artificial intelligence.

The regulator claims Cash FX engaged in minimal actual forex trading and misappropriated most participant funds, using new contributions to pay fictitious profits to earlier investors. The scheme allegedly caused participants to lose at least $406 million.

CFTC Director of Enforcement David I. Miller stated the action reflects the agency’s commitment to addressing fraud. The lawsuit follows recent CFTC moves to advance its regulatory approach to the digital asset sector after the failure of broader crypto framework legislation in the Senate.