Crypto enthusiasts and users understand the risks inherent in digital asset investments. Besides losing funds in price crashes, investors can lose money through scams, pump-and-dump schemes, exchange and protocol hacks, Ponzi schemes, etc.
Recently, many Latino investors have been hit with a crypto Ponzi scheme that led to the loss of funds. A City Hall warning disclosed that up to 30 residents had fallen victim to this fraud operation, cautioning others to be careful.
Crypto Ponzi Scheme Claims Investor’s Funds
The Latin Times report shared that up to 30 victims of the operation have alerted authorities of their losses to the scammers. In detail, the people behind the scam are employees of CryptoFX LLC, a company currently involved in a federal case in Texas.
Related Reading: Bitcoin Outflows Show Huge Spike, Whales Going On Shopping Spree?
The defendants, Mauricio Chavez and Giorgio Benvenuto, were running an unregistered crypto-asset offering to Latino investors in September 2022. When regulators got wind of the illegal dealings, the SEC executed an emergency action to stop the offering.
In the press report, SEC officials disclosed that Chavez claimed to be well-versed in crypto trading and supposedly taught Latino residents how to make more money. He used Bitcoin and NFTs to depict the crypto assets the victims can trade and get richer.
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Author: Eli Dambell
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