CFTC Charges Cash FX Group in $950 Million Ponzi Scheme

The U.S. Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Cash FX Group S.A., its CEO Huascar Jose Lopez Castillo, The Conversion Pros Inc., its CEO Ronald Pope, and Justin Halladay. The defendants are accused of operating a multi-level marketing Ponzi scheme that raised over $950 million from the public, including U.S. residents, under the guise of retail forex trading. The CFTC alleges that the defendants falsely claimed funds were managed by professional traders and AI algorithms, promising returns of up to 15% per week. In reality, the firm conducted minimal trading, misappropriated participant funds to pay earlier investors, and funneled millions to the defendants. Participants suffered losses of at least $406 million. The CFTC is seeking restitution, disgorgement, civil penalties, and permanent trading and registration bans.