⚡ SEC Continues to Crack Down on Fraudsters from CryptoFX
posted 15 Mar 2024
That Lightning-Fast SEC Action!
The U.S. Securities and Exchange Commission (SEC) has charged an additional 17 managers connected to the cryptocurrency platform CryptoFX, accusing them of orchestrating a $300 million Ponzi scheme. This action comes 18 months after the SEC banned CryptoFX's operations and accused its founders of fraud.
After filing the initial charges in this case and obtaining emergency relief, we continued our investigation to identify additional individuals who allegedly played roles in this massive Ponzi scheme,said Eric Werner, Director of the SEC’s Fort Worth Regional Office.
The SEC reports that the scheme ensnared at least 40,000 crypto investors from ten states within the U.S. and two foreign countries. The regulator is determined to persist in its investigation to ensure that not just the scheme's orchestrators and main participants, but also any intermediaries involved, are held accountable.
Learn more about Ponzi schemes, their history, and how they differ from pyramid fraud schemes in our detailed article.
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