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Crypto enthusiasts understand the risks associated with digital asset investments. Along with losing funds due to price drops, investors can lose money through pump-and-dump schemes, protocol exploits, and Ponzi schemes.

Several Latino investors have been victims of a Ponzi scheme over the past few months, according to a City Hall report. Further, Latin Times reveals that more than thirty Latino residents have informed authorities of their losses to the scam since the start of this month.

The company operating the Ponzi is called CryptoFX. Some of the firm’s executives, including Giorgio Benvenuto and Mauricio Chavez, were arrested last September and charged by the US Securities and Exchange Commission (SEC) for their involvement in the fraudulent activity.

How CryptoFX Executive Deceived Latino Residents Into Investing in the Scam

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In a statement, SEC revealed that Chavez marketed himself as an experienced crypto trader and was willing to teach Latino residents how to generate income from the emerging market. The regulator added that Chavez used NFT and Bitcoin to depict the digital assets his victims could trade and make a lot of money.

However, when Latino residents attended the training sessions, Chavez persuaded them to invest in CryptoFX instead, claiming the company would trade on their behalf. The SEC later revealed that Chavez had no experience with crypto assets and only depended on new investors to pay early investors.

Benvenuto also deceived several people into investing in the Ponzi scheme, although the SEC report did not disclose how. Further, the regulator claims the two collected over $25 million from innocent investors before their arrest. They spent $7 million for personal purposes and distributed the remaining amount to other investors.

City Hall Says CryptoFX is Still Running

Now the City Hall has warned the public that CryptoFX is still operational after several Latino residents reported that the company’s representatives are sending them promotional messages through Whatsapp.

City Hall has advised the residents to report to authorities in case a CryptoFX representative reaches out. In addition, the agency has provided a website ( where victims can file claims on their stolen money.

Another site victims can use to file claims includes the California Department of Financial Protection and Innovation (CDFPI) platform.

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James Davis

By James Davis

James Davis is a prominent crypto writer and analyst at Herald Sheets, recognized for his well-researched articles and thorough analysis of the dynamic digital currency market. Holding a degree in Economics from Harvard University, James combines his academic background with a keen interest in cryptocurrency to provide readers with the latest industry insights and trends.