The US Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Cash FX, a foreign exchange trading company, alleging a $950M scheme linked to cryptocurrencies. The CFTC claims that the company engaged in minimal forex trading and instead misappropriated most of the participant funds. Cash FX allegedly operated as a Ponzi scheme, using new investor funds to pay off earlier investors. This action is part of the CFTC's ongoing efforts to regulate and police the crypto-asset market.
This article is Bitcoincryptos' summary and analysis of reporting originally published by Cointelegraph. Read the full original report at the link above.
The alleged scheme involved Cash FX promising investors high returns on their investments, while in reality, the company was simply siphoning off funds to enrich itself and its affiliates.
