Miami-Dade Judge Rules Against Crypto-Forex Exchange FxWinning, Awards $114M to Defrauded Investors
On Thursday, December 12, 2024, Miami-Dade County Circuit Judge Lisa Walsh granted a directed verdict against the absent foreign exchange currency broker FxWinning Ltd., awarding investors more than $114 million. The ruling came after investors testified about being defrauded when the company abruptly ceased honoring withdrawal requests.
Judge Walsh’s decision followed approximately two hours of testimony in a joint trial, during which the Hong Kong-based firm was not present. This verdict concluded a series of legal proceedings in which Judge Walsh had already ruled in favor of the investors in two separate lawsuits, focusing solely on the issue of damages during this trial.
“The defendants had the opportunity to come to the courtroom today and challenge the evidence, but they’re not here,” stated David Levine, the attorney representing investors Cody Kerns and Christopher McGinnis, along with their associated companies.
Cody Kerns, a social media marketing executive and portfolio manager at Kerns Capital Inc., described how he became involved with FxWinning, which he believed to be a legitimate online trading platform. Kerns opened an account in early 2022, initially receiving his withdrawal requests until May 2023, when he was informed that his funds would be transferred to his Bitcoin wallet within 15 business days. However, no funds were ever received.
Other investors echoed similar experiences, reporting that FxWinning began delaying withdrawal requests in early 2023 before completely halting them by May.
Renan de Rocha Gomes Bastos, representing himself and his company, CFT Solutions, testified that he lost approximately $42 million. Gomes Bastos, who immigrated from Brazil to the United States in 2020, chose FxWinning as an investment platform due to difficulties in accessing American brokerages without a Social Security number. He described the past two years as the most challenging of his life, resulting in the sale of his home in Miami and other personal possessions. “I just want to rebuild my life again,” Gomes Bastos expressed, noting his responsibilities as a father.
The investors’ lawsuits accuse FxWinning, along with its CEO Rafael Cutie, shareholder and broker David Merino, and three other alleged operators, of orchestrating a “globe-sprawling fraudulent scheme” that defrauded users of tens of millions of dollars. The company ceased operations in June 2023, allegedly advising users to withdraw their funds, although investors claim their requests were never fulfilled.
FxWinning had previously entered the lawsuit to contest jurisdiction but later withdrew, following Judge Walsh’s ruling that the company could be held accountable in Florida. In a filing from February, the firm asserted its right to challenge both jurisdiction and venue.
Claims against Cutie and Merino remain active. The two defendants, currently residing in Dubai, sought to dismiss the claims by arguing that the lawsuit did not demonstrate sufficient connections to Florida related to their activities. However, Judge Walsh determined that the complaint provided sufficient evidence indicating that both Cutie and Merino managed FxWinning’s operations in Florida, including traveling to the state for business purposes.
