U.S. authorities have indicted 17 people for their alleged involvement in a multi-million dollar cryptocurrency Ponzi scheme.
In a new press release, the U.S. Securities and Exchange Commission (SEC) announced that it will indict 17 individuals for operating a crypto scheme that targeted 40,000 investors in three countries.
According to regulators, Texas-based company CryptoFX sold funds entrusted to it by customers under the guidance of a suspect who promised investors that the company would generate returns of 15% to 100% from cryptocurrency and foreign exchange trading. It is suspected that the equivalent of $300 million was fraudulently processed.
But instead of using that money for trading, these individuals gave themselves bonuses, paid out other clients' profits, passed on fees to investors, and used the money to fund lavish lifestyles, according to the SEC. The funds were reportedly used to provide services.
Additionally, the SEC's complaint alleges that two of the defendants, Gabriel and Dulce Ochoa, continued to solicit investments even after being ordered to cease and desist in September 2022. Regulators say Mr. Gabriel instructed two victims to withdraw their SEC complaints if they wished. Please give their money back.
Gurbir S. Grewal, Director of the SEC Division of Enforcement, said:
“We believe that CryptoFX is a $300 million Ponzi scheme targeting Latino investors and promising them financial freedom and life-changing wealth through ‘risk-free’ and ‘guaranteed’ crypto and foreign exchange investments. claims that it was.
In the end, all CryptoFX guaranteed was a trail of thousands of victims across 10 states and two foreign countries.
A scheme of this scale requires many participants, and as today's actions demonstrate, we will not only hold the key architects of these large schemes, but also those who illegally recruit their victims. We also intend to press charges against all those who facilitated the fraud. ”
According to a press release, the SEC is seeking a permanent injunction, disgorgement with prejudgment benefits, and civil penalties against each defendant.
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