CFTC sues Cash FX over alleged $950 million crypto forex scheme

The CFTC filed a complaint Friday in the U.S. District Court for the Middle District of Florida against Cash FX Group and three individuals. The defendants include Cash FX CEO Huascar Jose Lopez Castillo of Brazil. They also include The Conversion Pros CEO Ronald Pope of Oregon. Justin Halladay of Florida is the third individual defendant. The complaint alleges that the defendants solicited and accepted over $950 million to trade retail foreign-exchange contracts in a commodity pool. The CFTC alleges that the defendants operated a multilevel marketing Ponzi scheme. The defendants allegedly claimed that expert traders, proprietary algorithms, and artificial intelligence managed the pool funds. The defendants allegedly promised returns of up to 15% per week. The CFTC alleges that Cash FX conducted minimal foreign-exchange trading and misappropriated most participant funds. The defendants allegedly used new participant contributions to pay fictitious trading profits. The defendants allegedly directed millions of dollars to each defendant. Cash FX allegedly provided participants with false accounting statements. The CFTC alleges that participants lost at least $406 million. Director of Enforcement David I. Miller said the enforcement division is refocusing on protecting the public from fraud and manipulation.