The U.S. Securities and Exchange Commission (SEC) has taken action against 17 individuals involved in a $300 million Ponzi scheme aimed at Latino investors, known as CryptoFX LLC.

Operating out of Houston, Texas, the scheme targeted over 40,000 investors in 10 states and two foreign countries with promises of high returns through “risk-free” crypto and foreign exchange investments.

Following an emergency intervention in September 2022, the SEC halted CryptoFX’s operations and implicated key figures Mauricio Chavez and Giorgio Benvenuto.

The 17 individuals charged, from Texas, California, Louisiana, Illinois, and Florida, are accused of orchestrating the CryptoFX network and luring investors with potential returns of 15% to 100%. However, funds meant for trading were allegedly used for personal gain, including commissions, bonuses, and lifestyle expenses.

The SEC has brought various charges against the defendants related to fraud, securities registration, broker registration, and whistleblower protection. Two defendants, Luis Serrano and Julio Taffinder, have settled without admitting guilt, agreeing to pay over $68,000 in penalties, disgorgement, and interest.

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