A $300M Ponzi Scheme That Targeted Latinos Falsely Claimed to Buy Crypto, SEC Says

by Lester White

The U.S. Securities and Substitute Commission sued 17 participants tied to an alleged Ponzi blueprint that took in $300 million from over 40,000 victims.

The defendants, who centered the Latino community in 10 U.S. states and two assorted countries, contented investors that their funds could be invested in crypto and assorted assets, but weren’t, the SEC acknowledged in a assertion.

The SEC charged a total of 17 defendants, two of whom settled.

In a assertion, SEC Enforcement Director Gurbir Grewal acknowledged the blueprint promised “lifestyles-altering wealth” to victims.

“The top likely element that CryptoFX assured was a creep of thousands upon thousands of victims stretching all over 10 states and two distant places countries,” he acknowledged. “A blueprint of that size requires hundreds contributors, and as at the present time’s shuffle demonstrates, we are able to pursue prices in opposition to no longer factual the principal architects of these extensive schemes, but all those who additional their fraud by unlawfully soliciting victims.”

The SEC had previously charged Mauricio Chavez and Giorgio Benvenut, the blueprint’s leaders, in an emergency shuffle closing October.

Thursday’s submitting expands the number of defendants and says no longer less than two of them, Gabriel and Dulce Ochoa, persisted soliciting investors past closing year’s shuffle.

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