According to the SEC, CryptoFX allegedly targeted crypto investors from the Latino community across 10 U.S. states and two foreign countries.
The United States Securities and Exchange Commission (SEC) has charged 17 individuals with orchestrating a $300 million Ponzi scheme under the guise of crypto trading platform CryptoFX.
CryptoFX was registered as a crypto trading platform in Houston in February 2020. In September 2022, the SEC filed an emergency action to halt all operations of CryptoFX, suspecting it of being an ongoing crypto-asset Ponzi scheme. About 18 months later, on March 14, the SEC identified 17 individuals allegedly involved in the scheme.
In the words of Gurbir S. Grewal, director of the SEC’s Division of Enforcement:
