US authorities have charged 17 people for their alleged involvement in a multi-million dollar cryptocurrency Ponzi scheme.
In a new press release, the US Securities and Exchange Commission (SEC) said it has charged 17 individuals for operating a cryptocurrency scheme that targeted 40,000 investors in three countries.
According to the regulator, Texas-based CryptoFX allegedly mishandled deposited customer funds worth $300 million under the leadership of accused individuals who promised investors that the company would make gains ranging from 15% to 100% on cryptocurrency and forex trading.
But instead of using the money to trade, the SEC says the individuals used the money to give themselves bonuses, pay other clients returns, distribute commissions to investors, and finance lavish lifestyles.
Furthermore, the SEC complaint alleges that two of the defendants — Gabriel and Dulce Ochoa — continued to solicit investments even after they were ordered to stop in September 2022. The regulator says Gabriel instructed two victims to drop their complaints with the SEC If they want to. Get their money.
Gurbir S says Grewal, Director of the Enforcement Division of the Securities and Exchange Commission,
“We allege that CryptoFX was a $300 million Ponzi scheme that targeted Latino investors with promises of financial freedom and life-changing wealth through ‘risk-free’ and ‘secured’ cryptocurrency and forex investments.”
In the end, the only thing CryptoFX has guaranteed is a string of thousands upon thousands of victims stretching across ten states and two foreign countries.
A scheme of this magnitude requires a lot of participants, and as today's action demonstrates, we will pursue not only the principal architects of these massive schemes, but also all those who further their fraud by illegally luring victims.
According to the press release, the SEC is seeking permanent injunctions, disgorgement of prejudgment interest, and civil penalties against each defendant.
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