Today, after a four-day trial, a jury in the United States District Court for the Southern District of Texas found defendant Ismael Sanchez liable for securities fraud and registration violations.
As shown at trial, Defendant Sanchez was a lead salesperson for CryptoFX, a large-scale Ponzi scheme that targeted approximately 40,000 investors by promising to trade investor funds in the crypto asset and foreign exchange markets, but in reality used investor money to make Ponzi payments, pay commissions to salespeople, and fund personal expenses. The office in Chicago that Sanchez led raised tens of millions of dollars from investors. The jury found Sanchez liable for securities fraud and registration failures under the federal securities laws.
Statement of SEC Enforcement Director Margaret A. Ryan:
“We are pleased with the jury verdict holding Mr. Sanchez liable for fraud and other violations for his role in soliciting retail investors to put their money into this egregious Ponzi scheme. This action demonstrates our ongoing commitment to our core mission of protecting investors and holding wrongdoers accountable. I thank the trial team for its hard work and professionalism in trying this case.”
