Pyramid scheme cancelled: raises more than $10 million.

Pyramid scams disguised with great crypto opportunities are more common than it seems. Such is the case with the company CryptoFX,LLC. A fraud model that encouraged users to invest in order to become millionaires thanks to cryptocurrencies.

However, the fraud came to an end when the Securities and Exchange Commission (SEC), filed a lawsuit to stop a fraudulent and unregistered cryptoasset offering targeting Latino investors; led by Mauricio Chavez and Giorgio Benvenuto.

The court halted the offering and issued temporary asset freeze orders, as well as other emergency measures. Chavez, 41, had no experience or training in investments or cryptoassets; but in 2020 he began providing paid classes. In addition, he provided each of his clients with false documentation.

The lawsuit details that Chavez and his partner solicited investors to deposit their money in the company CryptoFX which; in theory, would be used for cryptocurrency and currency investment with a promise of return of up to 90% in just six months.

In this way, the defendants raised more than $12 million from more than 5,000 investors. For the time being, the SEC asked the court for permanent imprisonment, civil penalties, as well as the full return of the improper gains with interest; as well as the prohibition for Chavez and his partner to be directors of any listed company.

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