The CFTC filed a civil enforcement action against Cash FX Group S.A., its CEO Huáscar José López Castillo, and other key associates. The regulatory agency alleges that the defendants operated a massive multi-level Ponzi scheme through which they raised over $950 million from investors globally and within the US, promising algorithm- and AI-assisted Forex trading with fictitious returns of up to 15% weekly.
Judicial filings indicate that the platform executed minimal foreign exchange trading and systematically diverted user capital to pay purported returns to earlier members and enrich its promoters. Victims suffered cumulative losses estimated at at least $406 million. This regulatory action highlights the intensification of enforcement measures against fraudulent schemes leveraging cutting-edge technological narratives to unlawfully solicit funds in financial markets.
As a next step, the CFTC is seeking full restitution of funds, disgorgement of ill-gotten gains, substantial civil monetary penalties, and permanent trading and registration bans against Cash FX Group and the individuals involved.
Source: https://www.cftc.gov/PressRoom/PressReleases/9304-26
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