CDS Crypto News CryptoFX Ponzi Scam: SEC Charges 17 People in This Case
Crypto News

CryptoFX Ponzi Scam: SEC Charges 17 People in This Case

300 million dollars were stolen in the CryptoFX ponzi scam.

165
CryptoFX Ponzi Scam: SEC Charges 17 People in This Case

Crypto News – Under the pretense of the cryptocurrency trading platform CryptoFX, the SEC has accused 17 people of organizing a $300 million Ponzi scam.

CryptoFX Ponzi Scam: SEC Charges 17 People in This Case

The SEC filed an emergency action to shut down CryptoFX in September 2022 because they believed it to be a running Ponzi scheme using crypto assets. The SEC named 17 people who were allegedly part of the fraud on March 14, which was around eighteen months later.

We allege that CryptoFX was a $300 million Ponzi scheme that targeted Latino investors with promises of financial freedom and life-altering wealth from ‘risk free’ and ‘guaranteed’ crypto and foreign exchange instruments.

Gurbir S. Grewal, director of the SEC’s Division of Enforcement

What Does the SEC Demand from the Court?

The SEC claims that CryptoFX purportedly targeted Latino cryptocurrency investors in ten US states as well as two other nations. According to Grewal, a Ponzi scheme of this size needs a lot of participants, and the SEC has charged the main organizers and those who carried out the plan.

The SEC discovered that a number of people connected to CryptoFX had stolen money from investors by making exaggerated claims about investments in potentially profitable cryptocurrencies and NFTs. The Securities and Exchange Act was violated by the people, and the SEC asked the court to charge them. The 17 people are also required by the SEC to “disgorge,” or return, the money and pay extra civil fines for the infractions.

CryptoFX Ponzi Scam: SEC Charges 17 People in This Case
Written by
lectertodd

Lectertodd is 27 years old. She graduated from Çankaya University, Department of Psychology, in 2021. She actively works as a writer, translator, and editor for various websites. Moreover, she loves reading, researching, and learning new things.

Leave a comment

Leave a Reply

Related Articles

USDG Stablecoin: Paxos Teams Up with Robinhood, Kraken, and Galaxy Digital

Paxos has launched the USDG stablecoin, backed by major financial firms like...

Ethereum White Paper Anniversary: From Concept to Global Smart Contract Platform

Ethereum White Paper Anniversary: From Concept to Global Smart Contract Platform

Bitcoin Liquidations Spike: Over $150M in Longs Wiped Out as Price Slides

Bitcoin Liquidations Spike: Over $150M in Longs Wiped Out as Price Slides

Memecoins Explained: The Intersection of Internet Culture and Crypto

Binance Research's report analyzes the rise of memecoins, highlighting their cultural impact,...