ChainCatcher news reports that, according to the official website of the U.S. Securities and Exchange Commission (SEC), the SEC has charged 17 individuals in connection with an alleged $300 million Ponzi scheme. The scheme involves CryptoFX LLC, based in Houston, Texas, targeting over 40,000 investors in the U.S. and two other countries (primarily Latino).According to the SEC's complaint, CryptoFX claimed to trade in cryptocurrency and foreign exchange markets on behalf of investors, but was actually a Ponzi scheme. From May 2020 to October 2022, 17 individuals from Texas, California, Louisiana, Illinois, and Florida were charged as leaders of the CryptoFX network, promising investors returns of 15% to 100% through various means related to CryptoFX's cryptocurrency and foreign exchange trading.It is reported that CryptoFX raised $300 million from investors but did not use most of the funds for the trading purposes it claimed. After a court issued an order in September 2022 to halt the CryptoFX scheme, two defendants continued to solicit investments, with Gabriel Ochoa instructing two investors to withdraw their complaints filed with the SEC so they could recover their investments.

ChainCatcher news, the California Department of Financial Protection and Innovation (DFPI) has ordered the cryptocurrency trading platform CryptoFX to cease operations, stating that it violated California securities laws and accused CryptoFX of offering and selling unqualified securities while making substantial false statements to investors.According to dozens of complaints submitted to the DFPI, CryptoFX failed to deliver the promised returns on its claimed investments, thereby deceiving investors and causing them to suffer significant financial losses. (Source link)