The U.S. Securities and Change Fee sued 17 people tied to an alleged Ponzi scheme that took in $300 million from over 40,000 victims.
The defendants, who focused the Latino group in 10 U.S. states and two different nations, satisfied traders that their funds can be invested in crypto and different property, however weren’t, the SEC mentioned in a press launch.
The SEC charged a complete of 17 defendants, two of whom settled.
In an announcement, SEC Enforcement Director Gurbir Grewal mentioned the scheme promised “life-altering wealth” to victims.
“The one factor that CryptoFX assured was a path of hundreds upon hundreds of victims stretching throughout 10 states and two international nations,” he mentioned. “A scheme of that measurement requires a number of members, and as in the present day’s motion demonstrates, we’ll pursue fees towards not simply the principal architects of those large schemes, however all those that additional their fraud by unlawfully soliciting victims.”
The SEC had beforehand charged Mauricio Chavez and Giorgio Benvenut, the scheme’s leaders, in an emergency motion final October.
Thursday’s submitting expands the variety of defendants and says at the least two of them, Gabriel and Dulce Ochoa, continued soliciting traders previous final yr’s motion.