The U.S. Securities and Exchange Commission (SEC) has filed charges against 17 individuals in connection with a $300 million Ponzi scheme linked to CryptoFX LLC, primarily targeting Latino investors.

The scheme, allegedly headquartered in Houston, Texas, purported to offer risk-free and guaranteed returns through cryptocurrency and foreign exchange investments to over 40,000 investors across 10 states and two foreign countries.

This enforcement action follows the SEC's prior intervention in September 2022, which halted CryptoFX's operations and implicated its leaders, Mauricio Chavez and Giorgio Benvenuto.

The accused individuals, hailing from Texas, California, Louisiana, Illinois, and Florida, are accused of orchestrating the CryptoFX network, promising returns ranging from 15% to 100%.

However, funds purportedly intended for trading were diverted for personal use, including paying commissions, bonuses, and funding their lifestyles.

The SEC has brought forth various charges related to fraud, securities registration, brokerage registration, and whistleblower protection violations. Two defendants, Luis Serrano and Julio Taffinder, have agreed to settlements totaling over $68,000 without admitting or denying wrongdoing.