The Securities and Exchange Commission has accused 17 individuals of participating in a $300 million Ponzi scheme that targeted primarily Latino investors.
The scheme, operated by Texas-based company CryptoFX LLC, affected around 40,000 people in ten U.S. states and two other countries.
The SEC alleges that the company lured investors by promising financial freedom and guaranteed profits from crypto and foreign exchange investments, but instead used most of the money raised to pay commissions and bonuses to themselves and fund their lavish lifestyles.
The scheme also involved unregistered offers and sales of CryptoFX investments and acting as unregistered brokers.
