SANTA MONICA—A Crypto Ponzi scheme has victimized over 30 households in Santa Monica. The company involved is known as CryptoFX, LLC. and victims paid large amounts of cash through the WhatsApp chat service. The city has learned that CryptoFX representatives are still continuing to solicit funds from people even though they are under federal enforcement action in Texas.  

The city is urging residents who are looking to invest in crypto-related ventures to exercise extreme caution and conduct thorough research. 

In September 2022, the Securities and Exchange Commission filed a complaint alleging that CryptoFX engaged in a multi-million securities fraud that targeted Latino investors in several states, including California. Their scheme involved classes to “educate and empower the Latino community to build wealth through crypto asset trading,” but the classes were used as a guise to solicit money from participants.

The complaint accuses CryptoFX of lying about investment returns and guaranteed that investors would not bear any losses, while investment money was not used for crypto trading as promised. SEC alleges that monies were used to pay fake returns to investors and diverted for the defendants’ personal use. A temporary restraining order was issued against the company and a receiver has been appointed to help recover and manage money and assets for the benefit of defrauded investors. 

Resources available to affected residents include the California Department of Financial Protection and Innovation, Haven Neighborhood Services, and an upcoming fraud prevention outreach event organized by the Santa Monica Police Department in collaboration with Familias Latinas Unidas.

A complaint can be filed with the DFPI by clicking here.

Haven staff can help victims file claims with the court-appointed Receiver in the CryptoFX SEC case.

For more information contact Diana Arciniega at or (213) 375-4663.