SEC Puts a Stop to $12 Million Ponzi Scheme in Texas

After last month’s news of a notable crypto Ponzi scheme, here’s another such case. This time, the U.S. Securities and Exchange Commission (SEC) is after Mauricio Chavez and Giorgio Benvenuto, who are involved in fraud targeting the Latino community in Houston, Texas.

While Chavez has no experience with cryptocurrency, he has been teaching a class aimed at empowering Latin Americans by instructing them how to use crypto to gain wealth. As part of the scam, Chavez manipulated the students to invest with his bogus company, CryptoFX. Since 2020, he received more than $12 million from some 5,000 investors, including those found through the seminars’ referral program. Benvenuto contributed to the scam by luring in a wealthy investor.

Out of the $12 million, the con artists used $8 million for purchases, including cars, jewelry, and real estate. The rest of the money went into fake returns to CryptoFX investors.

Luckily, the SEC intervened. Chavez and Benvenuto will now need to pay back the money they’ve illegally acquired, as well as a civil penalty. In addition, they’re barred from ever being able to work as directors in a public company.