SEC Unravels Massive Crypto Ponzi Targeting Latinos

Scheme ensnared over 40,000 victims across borders

The SEC charged 17 individuals for an alleged $300 million crypto Ponzi scheme. Targeting the Latino community across 10 U.S. states and two countries, the defendants falsely promised investing funds in crypto and other assets.

Two defendants settled, while the SEC pursued the remaining 15. Enforcement Director Gurbir Grewal condemned the "trail of thousands upon thousands of victims" lured by "life-altering wealth" promises.

The scheme's architects, Mauricio Chavez and Giorgio Benvenut, faced emergency SEC charges last October. Thursday's expanded action names additional defendants like Gabriel and Dulce Ochoa, who allegedly continued soliciting after October.

Ponzi schemes epitomize how fraudsters exploit crypto's complexities to dupe unwitting investors. Despite the SEC's best efforts, new schemes continually emerge to ensnare more victims.

This case underscores the importance of investor education, particularly in underserved communities where language barriers and unfamiliarity with investing can enable bad actors.

While charging culprits provides a measure of accountability, truly protecting investors requires empowering them with knowledge to identify and avoid such insidious schemes.