Crypto Scandal Uncovered: SEC Takes Down $300M Ponzi Scheme by CryptoFX – Full Details Revealed!

CryptoFX, a crypto trading platform based in Houston, faced accusations from the SEC of orchestrating a $300 million Ponzi scheme targeting Latino investors. The SEC identified 17 individuals allegedly involved in the scheme, aiming to halt the operations and hold the perpetrators accountable.

SEC Enforcement Director Exposes CryptoFX's Fraudulent Promises Targeting Latino Investors

Gurbir S. Grewal, director of the SEC’s Division of Enforcement, described CryptoFX's promises of 'risk-free' and 'guaranteed' financial gains as part of a deceptive scheme that preyed on investors' aspirations for financial freedom. The scheme allegedly targeted crypto investors from the Latino community across various regions.

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SEC Discovers CryptoFX Scam Involving Theft of Investor Funds

The SEC found that several individuals associated with CryptoFX misappropriated investors' funds by falsely promising investments in lucrative cryptocurrencies and NFTs. Investors were enticed during the crypto bull market, exacerbating the impact of the scheme.

SEC Files Lawsuit Against CryptoFX Perpetrators for Violating Securities Laws

The SEC requested legal action against the individuals involved, citing violations of the Securities and Exchange Act. They demanded the return of funds and proposed additional civil penalties for the violations.

SEC Delays Decision on Spot Bitcoin ETF Options Trading Until Late April

In a separate development, the SEC postponed its decision on approving options trading on spot Bitcoin exchange-traded funds (ETFs). The agency extended its decision period by 45 days, with a final decision expected by April 24.