News 
Coin Information 
About us 
The U.S. Securities and Exchange Commission (SEC) has initiated legal action against 17 individuals allegedly involved in a Ponzi scheme that amassed $300 million from more than 40,000 victims.
Contrary to the SEC's findings, the defendants persuaded investors that their money would be invested in cryptocurrency and other assets.
Scheme Promised Life-Altering Wealth
According to a press release by the SEC, the defendants enticed investors with promises of substantial wealth, misleading them about the nature of the investment scheme.
Gurbir Grewal, the Director of SEC Enforcement, emphasized that while the scheme pledged "life-altering wealth" to victims, its result was a trail of numerous victims across multiple states and countries. Grewal underscored the SEC's commitment to pursuing charges against the principal architects of such large-scale schemes and those who assist in perpetuating the scam by soliciting victims.
"The only thing that CryptoFX guaranteed was a trail of thousands upon thousands of victims stretching across 10 states and two foreign countries," Grewal stated.
Expansion of Defendants in SEC's Legal Action
The SEC's legal action expands upon previous charges brought against Mauricio Chavez and Giorgio Benvenut, identified as the scheme's leaders, in an emergency action filed last October.
According to Coin Desk, the recent filing adds additional defendants to the case, indicating the agency's efforts to address the full extent of the alleged fraudulent activity. Moreover, the SEC alleges that at least two of the defendants, Gabriel and Dulce Ochoa, continued soliciting investors even after the emergency action taken by the SEC last year.
Based on a Crypto Head report, the most recent legal action expands the investigation's reach, underscoring ongoing solicitation efforts by Gabriel and Dulce Ochoa, persisting despite the initial charges.
The SEC's lawsuit against the 17 individuals associated with the alleged Ponzi scheme underscores the regulatory agency's commitment to combating fraudulent activities in the cryptocurrency market and protecting investors from financial harm.
Photo: Benjamin Brunner/Unsplash
Comment 0