The Commodity Futures Trading Commission (CFTC) has sued Cash FX Group and four associated defendants, alleging a $950 million multilevel marketing fraud scheme tied to purported forex trading. According to the regulator, participants lost at least $406 million through the alleged arrangement.

The CFTC filed its complaint on Sept. 25 in the U.S. District Court for the Middle District of Florida. The case names Cash FX Group S.A. and its CEO, Huascar Jose Lopez Castillo; The Conversion Pros Inc. and its CEO, Ronald Pope; and Justin Halladay. The agency announced the charges in a press release and a post on X:

. @CFTC Charges Cash FX Group S.A., and CEO; Three Others With $950 Million Fraud Scheme: — CFTC (@CFTC) September 25, 2026

The CFTC is the U.S. agency responsible for overseeing derivatives markets, including commodity pools and retail foreign currency contracts, which places the trading activity described in the complaint squarely within its enforcement remit.

Alleged Misuse of Investor Funds

According to the complaint, the defendants solicited more than $950 million from the public for a commodity pool trading retail foreign currency contracts. Participants were told that professional traders, proprietary algorithms, and artificial intelligence would generate substantial trading returns, and some were reportedly promised payouts reaching 15% weekly.

The CFTC alleges, however, that Cash FX conducted only minimal forex trading and misappropriated nearly all participant funds. New contributions were allegedly used to pay purported profits to earlier participants, while millions of dollars were paid to the defendants themselves. The regulator says Cash FX also issued account statements showing trading gains that were not generated through actual market activity. The structure described — new contributions sustaining payouts to earlier participants — corresponds to the defining mechanics of Ponzi-style fraud.

Earlier Regulatory Warnings

The case follows warnings issued against Cash FX by regulators in several jurisdictions. The UK's Financial Conduct Authority warned in December 2019 that the company was unauthorized to provide or promote financial services in Britain. Ireland's Central Bank warned in July 2021 that Cash FX was operating as an investment business without the required authorization.

Australia's Securities and Investments Commission (ASIC) issued its own warning in October 2021, stating that Cash FX was not licensed in Australia and promoted investment plans through social media and referrals. ASIC also noted that the company accepted crypto assets as payment, the detail that links the scheme to the cryptocurrency space.

The U.S. complaint thus arrives more than six years after the FCA's notice and nearly five years after ASIC's, extending the regulatory record on Cash FX across four jurisdictions.

Relief Sought

The CFTC is seeking restitution, disgorgement, civil monetary penalties, and trading and registration bans. It is also asking the court for a permanent injunction against further alleged violations of U.S. commodity laws.

As the litigation proceeds, the named defendants may respond to the complaint, and each element of the requested relief would fall to the court to determine. The allegations remain subject to the federal court process, and no final judgment has been entered in the case.

Source: Live Bitcoin News