# CFTC Files $950 Million Case Alleging Cash FX Group Forex Ponzi Scheme

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/24528
Published: 2026-09-27T03:54:42.000Z
Updated: 2026-09-27T03:54:42.000Z
Section: Regulation

> The regulator alleges participants lost at least $406 million after being promised weekly returns of up to 15% from AI-powered trading.

The Commodity Futures Trading Commission filed a complaint against Cash FX Group S.A. and three individuals, alleging they operated a multilevel-marketing Ponzi scheme that collected more than $950 million for supposed retail forex trading.

The complaint, filed Sept. 25 in the U.S. District Court for the Middle District of Florida, names Cash FX CEO Huascar Jose Lopez Castillo, The Conversion Pros Inc. CEO Ronald Pope and Justin Halladay as defendants.

The CFTC alleges the group told participants that expert traders, proprietary algorithms and artificial intelligence would manage their funds, while promising returns of up to 15% a week. Participants lost at least $406 million, the regulator alleges.

The CFTC alleges Cash FX conducted only minimal forex trading. Nearly all participant funds were allegedly misappropriated, with new contributions used to pay purported trading profits to other participants. The operation also allegedly issued false account statements showing large returns.

The regulator is seeking restitution, disgorgement, civil monetary penalties, trading and registration bans, and a permanent injunction against further violations of the Commodity Exchange Act and CFTC regulations.