The Cash FX (also known as Cash Forex Group) scam was a widely reported investment fraud scheme that operated between 2019-2022. As of 2022, Cash FX was ranked among the top 10 cryptocurrency scams by revenue, with an astonishing $145.5 million reportedly swindled from victims.
How Cash FX scams users
Cash FX Group presented itself as a legitimate Forex trading and education platform based in Panama. The scheme had several characteristic elements:
- It offered investment packages with exceptionally high returns (often promising 1-2% daily or 30%+ monthly) supposedly generated by professional Forex traders.
- It operated with a multi-level marketing structure where members earned commissions by recruiting others.
- New members were required to purchase educational packages before being allowed to invest in trading pools.
- Many financial regulators worldwide issued warnings about Cash FX.
Authorities such as The Australian Securities and Investment Commission (ASIC) and the UK Financial Conduct Authority (FCA) have issued warnings about the platform, as well as 30 other countries issuing warnings.
The typical pattern involved investors receiving initial returns and creating positive testimonials, however this was then followed by delayed withdrawals and eventually complete inability to access funds.
Cash FX investors were shown fake profits from their investment which grew rapidly to start but then plateaued, with their profits and earnings seemingly becoming capped. At this point, scammers posing as account managers would then encourage their victims to purchase a new “academy package” promising greater returns and tying investors into the scheme for several months more.
How Cash FX utilised cryptocurrency
Investors of the Cash FX scam made payment to the platform via cryptocurrency which allowed the scheme to operate globally without banking restrictions and avoid the scrutiny and regulations of conventional financial systems.
The investment platform drew in crypto enthusiasts seeking an ostensibly accessible investment opportunity and the scammers were able to exploit investors knowledge gaps to create withdrawal obstacles.
When investors tried to cash out:
- The company could blame delays on blockchain congestion or technical issues
- They implemented complex withdrawal processes with multiple conversion steps
- Technical barriers made it challenging for novice cryptocurrency traders to navigate the process
The combination of factors made cryptocurrency an ideal tool for executing their fraudulent scheme while maximising difficulty of recovery for victims.
How to avoid a Cash FX Scam or similar MLM scam
MLM (Multi-Level Marketing) scams can be difficult to identify because they often disguise themselves as legitimate business opportunities. Cash FX uses a multi-level marketing scheme whereby individuals were incentivised to recruit new members with promises of guaranteed returns.
Before investing in any platform, it is paramount to conduct an online search into the platform checking websites such as the Financial Conduct Authority (FCA), Companies House and trusted review platforms such as Trustpilot.
Recognise warning signs for MLM scams:
- Promise of unrealistic income or “financial freedom” with minimal work.
- Emphasis on recruiting others to reap the rewards of the scheme.
- Requirements to purchase expensive starter up packages.
- Vague descriptions of what the company actually does.
- High pressure recruitment tactics and emotional manipulation.
- Cult-like praise of successful members and dismissal of sceptics usually in the form of WhatsApp or Telegram groups.
General warnings to look out for:
- Any platform that guarantees a monthly or weekly return should be avoided.
- Return on investment… if it looks too good to be true it is!
- Pressure to act quickly coupled with threats of losing investment profits.
What to do if you are a victim of the Cash FX Scam
If you suspect you have fallen victim to the Cash FX cryptocurrency scam, we recommend you take the following steps to have the best chance of retrieving your lost funds:
- Document everything related to the scam.
- Report it to Action Fraud.
- Reach out to WRS for a free consultation
How WRS can help you recover from a Cash FX Scam
We specialise in helping individuals reclaim lost funds to fraud or scams. Over the past 3 years, we’ve recovered more than £45,000,000 for our clients. It’s thanks to our team of solicitors and recovery claim specialists who trace and recover the investments you’ve lost from scams. Plus, we offer a no-win, no-fee service. You won’t pay a thing unless we recover your money.
Get in touch to recover your lost investments today.
One of WRS’s Cash FX success stories:
WRS successfully recovered a significant portion of lost funds for our client, who fell victim to the Cash FX scam. Like many other investors, our client was misled into believing they were engaging with a legitimate company due to its professional setup, which included identification requirements for KYC checks, participation in training groups with comprehensive training videos, and tailored trading packages outlining projected investment growth.
Within six months of initiating the recovery process, WRS secured a substantial bank offer for our client, resulting in the return of over half of their lost funds. Our legal team demonstrated the bank's failure to fulfil its duty to protect its customer, while our in-house cryptocurrency experts utilised blockchain analysis software to trace the client's funds directly to a wallet associated with the scam entity. This evidence was crucial in proving that our client's funds were no longer in their possession and had been lost to the Cash FX scam.
See our client's testimonial.