U.S. CFTC sues Cash FX Group over alleged $950M crypto-linked Ponzi scheme

The U.S. Commodity Futures Trading Commission said it has sued Cash FX Group and three related individuals over an alleged $950 million forex investment fraud. The CFTC alleged the defendants ran a crypto-linked multilevel Ponzi scheme and promised investors weekly returns of up to 15%. According to the CFTC, the defendants promoted the investment program as being managed by professional traders using proprietary algorithms and artificial intelligence, but actual forex trading was extremely limited. The agency also alleged they misappropriated most investor funds and used money from new investors to pay fictitious profits to existing investors. The CFTC estimated victim losses at no less than $406 million.