tl;dr
The US Securities and Exchange Commission (SEC) has been actively cracking down on a $300 million Ponzi scheme, taking legal actions against individuals associated with CryptoFX LLC. The SEC charged 17 individuals for promoting unregistered investments and has uncovered the depth of the fraud, which...
The US Securities and Exchange Commission (SEC) has been actively cracking down on a $300 million Ponzi scheme, taking legal actions against individuals associated with CryptoFX LLC. The SEC charged 17 individuals for promoting unregistered investments and has uncovered the depth of the fraud, which has mainly defrauded Latino investors. Furthermore, the SEC's website encountered troubles, sparking speculation about a cyber-attack, and in January 2024, the SEC suffered a SIM swap attack compromising its Twitter account.
Amidst a vigorous crackdown on a $300 million Ponzi scheme, the US Securities and Exchange Commission (SEC) faces unexpected digital disruptions. These issues compound the challenges of addressing extensive financial fraud. The SEC’s recent legal actions against individuals associated with CryptoFX LLC spotlight the gravity of these scams. This company is implicated in a scheme that mainly defrauded Latino investors. In a sweeping move, 17 individuals from various states, including Texas and California, were charged. They allegedly promoted unregistered investments and operated without broker registration. The expansion of the legal battle follows the 2022 case against CryptoFX’s leaders, Mauricio Chavez and Giorgio Benvenuto, who reportedly swindled over $12 million from investors. The SEC’s resolve to dismantle this fraudulent operation is evident. Consequently, several defendants have settled, paying significant sums without admitting guilt. Meanwhile, the SEC’s website encountered troubles, notably a website outage, sparking speculation about a cyber-attack. In January 2024, the SEC suffered a SIM swap attack compromising its Twitter account. This breach misled the public about a Bitcoin ETF approval, triggering market upheaval. The incident revealed the SEC’s vulnerabilities, particularly the disabled multi-factor authentication on its Twitter account.
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