TLDR
- The CFTC filed a lawsuit against Cash FX Group and three individuals over a $950 million forex investment scheme.
- The complaint names CEO Huascar Jose Lopez Castillo, along with The Conversion Pros CEO Ronald Pope and Justin Halladay.
- The agency claims the group ran a multilevel marketing Ponzi scheme tied to crypto and forex trading claims.
- Investors reportedly lost at least $406 million after being promised weekly returns of up to 15%.
- The lawsuit was filed in the US District Court for the Middle District of Florida on September 25, 2026.
The Commodity Futures Trading Commission has filed a lawsuit against Cash FX Group and three individuals connected to the company. The case centers on an alleged forex investment scheme that pulled in more than $950 million from the public.
.@CFTC Charges Cash FX Group S.A., and CEO; Three Others With $950 Million Fraud Scheme: https://t.co/UwSVdbH1Qv
— CFTC (@CFTC) September 25, 2026
The complaint was filed in the US District Court for the Middle District of Florida. It names Cash FX Group and its CEO, Huascar Jose Lopez Castillo, who is based in Brazil.
Also named are The Conversion Pros and its CEO, Ronald Pope, who is based in Oregon. Justin Halladay of Florida is the third individual listed in the complaint.
What the CFTC Is Alleging
According to the agency, the defendants operated a multilevel marketing scheme that functioned like a Ponzi structure. The complaint says they solicited and accepted funds for the stated purpose of trading retail foreign currency contracts through a commodity pool.
The CFTC alleges the group falsely claimed that expert traders, proprietary algorithms, and artificial intelligence were managing investor funds. Investors were reportedly promised returns as high as 15% per week.
The agency says the actual forex trading activity was minimal. Instead, it alleges that most of the money was misappropriated.
New investor funds were allegedly used to pay out fictitious profits to earlier participants. The CFTC also claims millions of dollars were funneled to each of the named defendants personally.
Cash FX is also accused of issuing false account statements. These statements were meant to convince participants that real trading profits were being generated.
Losses and Regulatory Response
The CFTC says participants lost at least $406 million as a result of the alleged scheme. This figure represents the confirmed losses tied to the case so far.
David I. Miller, Director of Enforcement at the CFTC, commented on the case. He said the agency’s enforcement division has refocused on protecting the public from fraud and manipulation.
Miller described the action as reflecting the agency’s commitment to addressing fraud wherever it is found. The CFTC is seeking restitution, disgorgement, and civil monetary penalties against the defendants.
The agency is also seeking trading and registration bans. A permanent injunction against further violations of the Commodity Exchange Act has been requested as well.
This case comes shortly after another CFTC development involving crypto markets. Cointelegraph reported on September 18 that the agency had submitted a new regulatory action covering crypto asset transactions for White House review.
Details of that planned regulation have not been made public. The submission followed the Senate’s failure to advance the CLARITY Act, a bill aimed at creating a federal framework for crypto market regulation.
The Cash FX case adds to a growing list of enforcement actions involving crypto-linked investment schemes. The CFTC’s complaint remains active in federal court as of the filing date.
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