The U.S. Securities and Exchange Commission (SEC) has taken legal action against 17 individuals connected to a Ponzi scheme that fraudulently raised $300 million from over 40,000 victims, predominantly targeting the Latino community across 10 U.S. states and two additional countries. The scheme, falsely promising investments in cryptocurrencies and other assets, led to significant losses among investors enticed by the prospect of life-altering wealth.
Scheme Details and Enforcement Action
The defendants involved in this operation convinced investors of high returns through crypto and other asset investments, which in reality, were non-existent. The SEC, in its press release, highlighted the deceitful nature of this scheme and its wide-reaching impact on thousands of victims beyond the U.S. borders. Two of the 17 charged defendants have already settled their charges with the SEC.
Authorities’ Response
Gurbir Grewal, the SEC Enforcement Director, emphasized the severity of the fraud, stating that the only guarantee from CryptoFX was the extensive victimization across multiple states and countries. This action by the SEC not only targets the scheme’s main architects, Mauricio Chavez and Giorgio Benvenut, who were charged in an emergency action last October but also expands to include others who contributed to propagating the fraud, including Gabriel and Dulce Ochoa, who persisted in soliciting investors even after initial legal actions.
Commitment to Justice
The SEC’s determined effort to charge all individuals involved in this extensive scheme underscores its commitment to pursuing justice for victims and holding accountable those who exploit investors’ trust. This case serves as a stern warning against the proliferation of investment scams, particularly those misleadingly associating themselves with the burgeoning field of cryptocurrency.
