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The agency alleges that less than 81% of the money collected was used for forex trading. It also claims some payments to earlier participants came from funds contributed by later participants.
Cash FX also promoted an artificial-intelligence trading system that it said could generate weekly returns of about 10%, the CFTC alleges. The agency claims the system was never operational.
Crypto Wallets Enter Investigation
The complaint identifies cryptocurrency wallets that Cash FX allegedly used to receive participant payments. The CFTC is seeking compensation for affected investors, the return of allegedly obtained funds, financial penalties and permanent trading bans.
The allegations have not been proven in court, and the defendants can respond as the case proceeds.
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