CryptoFX LLC was registered in the state of Texas and primarily targets Hispanic users. The organizers managed to attract over 40,000 clients from the USA and two other countries. The total damage from the actions of fraudsters, according to American law enforcement agencies, exceeded $300 million.
“We believe CryptoFX was a Ponzi scheme targeting Latin American investors that raised $300 million. The organizers lured investors with promises of financial freedom and life-changing wealth. To achieve this, clients were offered “risk-free” and “guaranteed” investments in cryptocurrencies. But in the end, the only thing that CryptoFX guaranteed was defrauding thousands of victims from 10 US states and two other countries,” said SEC Enforcement Director Gurbir Grewal.
CryptoFX promised investors returns on investments in cryptocurrency trading ranging from 15% to 100%. Most of the funds were used not for trading, but to pay interest to earlier investors and attract new ones. Of course, the organizers lived large and bought a house in Texas for $1 million.
Interestingly, at the end of 2022, the SEC declared CryptoFX a pyramid scheme and ordered the suspension of the company’s activities, accusing Mauricio Chavez and Giorgio Benvenuto of organizing the scheme. However, this did not stop other participants in the scheme – Gabriel and Dulce Ochoa – from continuing to raise funds.
Earlier, American law enforcement agencies charged the founder of the HyperFund crypto scheme with fraud.
Source: Bits
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