Florida Court Defaults Key Defendants in Alleged FxWinning Investment Scam Lawsuit
On Thursday, August 1, 2024, Miami-Dade County civil court Judge Lisa Walsh granted default judgments against several defendants in three fraud lawsuits related to an alleged $2.8 billion fraud scheme operated by a Hong Kong company.
Judge Walsh granted a motion for default judgment against Hong Kong-registered FxWinning Ltd., citing the company’s lack of legal counsel. As a company, FxWinning could not represent itself in Florida court without an attorney. However, Judge Walsh denied a default against former FxWinning CEO David Merino, who attended the hearing representing himself.
While Merino would not be defaulted, Judge Walsh warned him that he must follow all court procedures as any other party would. She recommended that he hire an attorney due to the legal complexities. As a self-represented foreign party in an English-language court, Merino was at a significant disadvantage. Judge Walsh gave Merino 10 days to respond to the complaints against him but said any insufficient filings could still result in a default judgment.
Default judgments were also granted against defendants Olga Huzhva and Rafael Brito Cutié. Huzhva, listed as a Cyprus resident and wife of current FxWinning CEO Cutié, failed to respond to complaints.
The lawsuits allege that FxWinning, Merino, and others carried out a “globe-sprawling fraudulent scheme” totaling over $2.8 billion between 2020 and 2023. According to court documents, victims were solicited through social media apps to invest in foreign exchange trading using FxWinning’s exclusive algorithm. Customers had to transfer cryptocurrency into FxWinning-controlled wallets before their accounts would be credited.
In January 2023, FxWinning claimed to be undergoing an audit and required additional customer verification. But plaintiffs said withdrawal times stretched from under a week to over two weeks, revealing the process as a ruse. FxWinning abruptly shut down in June 2023 without reimbursing investors, including $10 million owed to lead plaintiff CFT Solutions.
At the hearing, Judge Walsh rejected a default motion against FxWinning itself because the company failed to obtain new legal representation after a withdrawal. Merino claimed no involvement with FxWinning but filed court documents with assistance that Judge Walsh found concerning. An evidentiary hearing was scheduled for September 9th to consider Merino’s arguments in person.
With several key defendants now facing default judgments, Judge Walsh took steps to push the long-delayed fraud cases forward. While self-representation poses hurdles, her decisions aimed to balance fairness with ensuring the legal process continues, potentially providing answers to victims of the alleged $2.8 billion fraud scheme.
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