More Than 30 Santa Monica Households Victimized By Crypto Ponzi Scheme

SANTA MONICA, CA — Santa Monica officials said they have received information about more than 30 households that have been targeted by a crypto Ponzi scheme and have paid large amounts of cash to a company called CryptoFX, LLC.

CryptoFX, LLC. is currently at the center of a federal enforcement action, where the Securities and Exchange Commission alleged the company specifically targets Latino investors. Local authorities say that Santa Monicans reported being contacted by a CryptoFX representative via WhatsApp.

The SEC complaint, filed in September 2022, specifically named CryptoFX representatives Mauricio Chavez and Giorgio "Gio" Benvenuto, accusing them of defrauding as many as 5,000 investors by offering to trade their funds on crypto asset and foreign exchange markets.

"Targeting the Latino community, Chavez has used the attraction and novelty of crypto assets to solicit money from unsophisticated investors with no previous knowledge of the crypto asset markets," the federal complaint alleged.

According to the federal documents, Chavez has raised more than $12 million since 2020. The document claimed that the funds raised were used to fund Chavez's unrelated real estate company and lifestyle.

The federal court issued a temporary restraining order against CryptoFX to halt any additional fraudulent offerings and appointed a receiver to help recover and manage money for defrauded investors. The receiver's website provides further information and forms for people who would like to file claims.

Santa Monica officials cautioned residents against making any crypto-related investments unless they do proper research. The city provided a list of agencies to contact if residents were asked to give money to CryptoFX or its affiliates.

• California Department of Financial Protection and Innovation
  • To file a compliant with the DFPI, visit this webpage.
• Haven Neighborhood Services
  • To file claims with the court-appointed receiver in the CryptoFX SEC case contact Diana Aciniega at diana.arciniega@havenservices.org or 213-375-4663

In response to the case, the Santa Monica Police Department is planning outreach events addressing fraud prevention in Spanish and English in collaboration with Families Latinas Unidas. The project will cover common financial scams, detection and prevention of scams and provide additional resources for consumers. To learn more about the outreach events contact community.affairs@santamonica.gov.