The Australian Securities and Investments Commission (ASIC) has issued a securities fraud warning for CashFX Group, identifying the operation as a suspicious investment opportunity and Ponzi scheme. The warning, dated October 6th, states that CashFX Group, also known as Cash Forex Group or CFX, is not licensed to offer financial services in Australia.
This action by ASIC mirrors similar warnings issued in eighteen other jurisdictions. The regulator explicitly advises consumers against transferring any money, or additional funds, to CashFX Group. Individuals who have already sent money are urged to contact their financial institutions promptly to explore the possibility of tracing payments. The chances of recovering funds are significantly diminished when payments are made using crypto-assets.
ASIC indicated that it has gathered sufficient information regarding CashFX Group and does not require further reports from the public at this time. However, the commission cannot assist in the recovery of lost funds. The issuance of such a warning against a multi-level marketing company is rare for ASIC.
CashFX Group operates under the direction of Huascar Lopez from the Dominican Republic. The company recently announced the opening of a head office in Panama. Website traffic analysis shows a decline in visitors to CashFX Group’s online platforms, with Nigeria accounting for the largest share of traffic at 23%, followed by Australia at 15% and the United States at 13%.
Regulatory bodies in the United States, Nigeria, the Dominican Republic, and Panama have not yet taken action against Lopez or his associates. The Australian warning joins similar actions taken by authorities in Portugal, Sweden, Ireland, South Africa, the Philippines, Belgium, New Zealand, Jersey, Canada (New Brunswick, Manitoba, Saskatchewan, Quebec, and British Columbia), Panama, the Bahamas, Norway, and the United Kingdom.