A federal complaint alleges that Cash FX accepted more than $950 million while promoting expert traders, proprietary algorithms and AI, but used new participant money for fictitious returns. The allegations are unproven and the numerical claims must be read with their legal status intact.
The agency disclosed the September default judgment on 21 October. Its civil penalty is separate from restitution ordered in the earlier criminal case.
The civil complaint alleges more than $950m was raised through a forex pool and recruitment network, with new contributions funding fictitious profits. The CFTC seeks restitution and other remedies for alleged losses of at least $406m.