CFTC sues Cash FX, alleges $950M crypto-linked forex scheme
The CFTC filed suit against Cash FX Group, its CEO Huascar Jose Lopez Castillo, The Conversion Pros and CEO Ronald Pope, and Justin Halladay in a case involving more than $950 million. The agency alleges they ran a multilevel marketing Ponzi scheme that solicited funds for supposed retail forex trading in a commodity pool. According to the complaint, they falsely claimed participant money was managed by expert traders, proprietary algorithms, and AI, and promised returns of up to 15% per week. The CFTC says Cash FX conducted little actual trading, misappropriated most investor funds, used new deposits to pay fake profits, and transferred millions to each defendant. Participants were also given false account statements and lost at least $406 million.
