CFTC sues Cash FX over $950 million crypto‑linked forex scheme

The U.S. Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Cash FX Group and three individuals, alleging a $950 million fraud that combined foreign‑exchange investments with cryptocurrency promises.

Defendants and alleged scheme

The complaint names Cash FX and its CEO Huascar Jose Lopez Castillo (Brazil), The Conversion Pros and its CEO Ronald Pope (Oregon), and Justin Halladay (Florida). The CFTC says the parties operated a multilevel‑marketing Ponzi structure, soliciting retail investors with claims that pool funds would be managed by expert traders, proprietary algorithms and artificial intelligence, and promising weekly returns of up to 15 %.

Alleged misuse of funds

According to the agency, Cash FX performed only minimal foreign‑exchange trading. Most of the money raised was allegedly diverted to the defendants, while new participant contributions were used to fabricate trading profits. The CFTC asserts that participants lost at least $406 million.

Regulatory context

The complaint was filed in the U.S. District Court for the Middle District of Florida. It follows recent CFTC actions aimed at tightening oversight of crypto‑related activities, including a regulatory filing submitted to the White House after the Senate’s failure to pass the CLARITY Act.

Agency statement

David I. Miller, Director of Enforcement at the CFTC, said the agency remains focused on protecting the public from fraud and manipulation, emphasizing its commitment to pursue wrongdoing wherever it appears.