SEC Fights $300M Ponzi Scheme Amid Website Crash Concerns
SEC tackles $300M scam as website woes hint at cyber threats
The US Securities and Exchange Commission (SEC) is tackling a massive $300 million Ponzi scheme, but its efforts were hindered by a website crash, sparking cyber-attack fears. T
his follows previous security concerns, like the 2024 incident affecting Bitcoin ETF information.
Seventeen people were charged by the SEC for promoting illegal investments across states including Texas and California, expanding on the 2022 investigation into CryptoFX LLC. This company, led by Mauricio Chavez and Giorgio Benvenuto, allegedly cheated investors out of $12 million.
The scam, primarily targeting Latino communities, involved false promises of high returns from crypto and forex trading. Instead, the fraudsters used the money for personal gain, creating a vast network of victims across states and countries.
Gurbir Grewal, head of SEC enforcement, highlighted the extensive damage caused by CryptoFX, with many victims and widespread impact. Despite these challenges, several accused have already settled, paying fines without admitting guilt.
The SEC’s website issues, resulting in a "Page not found" message, raise concerns about potential cyber threats, reminding the public of the SEC's vulnerability to digital attacks.
The SEC continues its mission to protect investors and uphold financial market integrity amid these hurdles
