$300 Million Crypto Ponzi Scheme Exposed: SEC Files Charges Against 17 Suspects
The SEC has taken legal action against 17 individuals involved in a Crypto Ponzi scheme that defrauded over 40,000 victims and amassed $300 million. The scheme, operated by Houston-based CryptoFX LLC, targeted Latino investors with promises of financial freedom and guaranteed returns through cryptocurrency and foreign exchange investments. The defendants allegedly used new investors' funds to repay earlier investors, provide commissions and bonuses to themselves, and finance their lifestyles. Some defendants continued to solicit investments despite court orders to halt the scheme. The SEC seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties for each defendant. Two defendants have consented to final judgments and agreed to pay over $68,000 combined in civil penalties, disgorgement, and interest.
