Cash FX: CFTC denounces $950 million Ponzi scheme with “artificial intelligence”

The U.S. Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Cash FX, accusing it of running a global Ponzi scheme disguised as a foreign exchange (forex) investment fund. According to the lawsuit, the company collected more than $950 million from more than 400,000 accounts around the world, promising returns of up to 15% per week. Participants lost at least $406 million.

The lawsuit was filed on September 24, 2026, in the Federal District Court for the Middle District of Florida and announced the following day, according to the CFTC’s official announcement. The case was first reported by Finance Magnates. The charges have not yet been decided by the court.

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Who are accused in the Cash FX case?

The lawsuit is directed against five defendants. The first is Cash FX Group SA itself, a company that was founded in Panama in 2018 under the name Dulop More Rich Investments and renamed in July 2019. According to the text of the lawsuit, the company was dissolved and placed under liquidation in October 2022, but continued to operate normally after that.

It was led by founder and CEO Huascar Jose Lopez Castillo, who, according to the CFTC, controlled the bitcoin wallets where participants’ money ended up. The lawsuit also includes software company The Conversion Pros and its CEO Ronald Pope, as well as Justin Halladay, a Florida-based promoter with a large social media following.

The Conversion Pros, according to the lawsuit, set up Cash FX’s so-called “back office”: the platform that recorded deposits, calculated commissions, displayed account balances and processed withdrawals. Halladay led the “Cash FX Power Team,” and about 95 percent of Cash FX’s accounts were registered with his referral network. The CFTC alleges that he received at least $16 million in participants’ money.

Artificial intelligence and "not a single day with damage"

Cash FX's basic narrative was that investors' money went into a common fund, managed by experienced traders with the help of proprietary algorithms and artificial intelligence. Promises of returns of up to 15% per week were accompanied by a multi-level marketing (MLM) system, in which participants earned commissions by bringing in new members.

The reality, according to the CFTC, was completely different. Less than 1% of the money went into actual trades, as InvestmentNews. From July 2019 to July 2023, the platform showed a positive return every day, without a single day with a loss, which is practically impossible in the forex markets. The lawsuit claims that the returns were manually entered by the CEO himself, often days before the alleged trades.

As in any Ponzi scheme, the “profits” of older participants were paid out of the money of younger participants. Investors received fake account statements with returns that did not come from any trades, while millions of dollars were transferred, according to the CFTC, to the defendants themselves. Ultimately, about 81% of participants lost money.

The warnings have been in place since 2019

The company was not unknown to regulators. According to the lawsuit, regulators in at least 19 countries had issued public warnings. The UK’s Financial Conduct Authority warned as early as December 2019 that the company was unlicensed, followed by the Central Bank of Ireland in July 2021 and Australia’s ASIC in October of the same year. ASIC noted that Cash FX attracted participants through social media and personal recommendations.

These warnings were mainly about the lack of a license, not the existence of a Ponzi scheme. But they failed to stop the flow of money: the lawsuit says that more than 6,000 accounts of US residents deposited at least $27 million, while payments to Halladay continued at least until June 2022.

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What is the CFTC asking for?

The CFTC is seeking damages for participants, disgorgement of illegal profits, monetary penalties, a permanent trading and registration ban for all defendants, and an injunction prohibiting further violations. This is a civil action; the CFTC’s announcement does not mention criminal charges. “This action, and the massive fraud it targets, reflects our steadfast commitment to addressing fraud wherever we find it,” said David I. Miller, director of the CFTC’s Enforcement Division.

How do you recognize an investment scheme like Cash FX?

The case contains almost all the classic signs of an investment fraud. The SecNews technical team highlights the most characteristic ones:

• Unrealistic returns: 15% per week means multiplying money within a few months, something no legitimate investment offers.
• Profits without any losses: in real markets there are bad days. A history of only profits is an indication that the numbers are fabricated.
• Loud words without evidence: referring to “artificial intelligence” and “proprietary algorithms” without any independent verification proves nothing.
• Reward for new members: when earnings depend on how many people you bring, the structure is pyramid-shaped.
• Lack of license: always check if the company is licensed by the Securities and Exchange Commission or another European supervisory authority, and look for any warnings about it.

The Cash FX case shows how easily an investment scheme can reach hundreds of thousands of people when it combines promises of artificial intelligence, quick profits and popular influencers. The warnings from the authorities were there early on; the crucial thing is for the investor to seek them out before giving away their money.

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