• CryptoFX was able to amass over $12 million from over 5,000 investors.
• More than 90% of the monies was used by Chavez to maintain his extravagant lifestyle.

A fake cryptocurrency offering that specifically targeted the Latino population in the United States was immediately shut down by the Securities and Exchange Commission (SEC).

According to an SEC complaint published on Monday. Houston natives Mauricio Chavez and Giorgio Benvenuto, who ran the Texas business CryptoFX, “used the attraction and novelty of crypto assets to solicit money from unsophisticated investors” by promising them massive returns on their money.

Fake Documentation and Assurances

Chavez has been offering workshops “for the ostensible purpose of educating and empowering the Latino community to build wealth through crypto asset trading.” Despite his lack of expertise, background, or training in investing or crypto.

The lawsuit filed in the U.S. District Court for the Southern District of Texas alleges that seminars hosted by CryptoFX since 2020 “were merely conduits for soliciting investors to give their money to CryptoFX” through a ponzi scheme.

Chavez reportedly sent investors fake documentation. That included false assurances that they would incur no losses and exaggerated his knowledge of cryptocurrency. Based on the information provided by the SEC, CryptoFX was able to amass over $12 million from over 5,000 investors.

More than 90% of the monies was used by Chavez. To maintain his extravagant lifestyle. Which included the purchase of automobiles, jewelry, and a mansion in his wife’s name. And the acquisition and development of real estate that he and Benvenuto owned

Benvenuto, meantime, is accused of luring a wealthy investor into the plan and then using the money for personal gain and the benefit of CBT Group, LLC, a business he and Chavez co-owned.

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