TLDR: Mars FX reported 19% annual returns with zero losing months, a pattern no legitimate fund has ever sustained in history. Novus directed investor funds toTLDR: Mars FX reported 19% annual returns with zero losing months, a pattern no legitimate fund has ever sustained in history. Novus directed investor funds to

Mars FX Hedge Fund Collapse: $600 Million Missing and Nobody Knows Where It Went

2026/04/25 15:33
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TLDR:

  • Mars FX reported 19% annual returns with zero losing months, a pattern no legitimate fund has ever sustained in history.
  • Novus directed investor funds to an unnamed BVI partner later identified as TRFX, which had been offline since 2022.
  • Deloitte issued clean audit opinions yearly without independently verifying whether the reported fund assets actually existed.
  • US regulators are now proposing fewer hedge fund disclosures and cutting enforcement staff amid an active $600M fraud investigation.

A massive financial scandal has emerged around Mars FX, a hedge fund that allegedly collected nearly $600 million from investors before the money disappeared.

The fund, operated under the Novus umbrella and led by Wharton graduate David Choi, posted suspiciously perfect returns for years.

Regulators across multiple countries are now investigating, while auditor Deloitte faces serious legal scrutiny for signing off on financials without independent asset verification.

Red Flags Ignored as Investors Poured Hundreds of Millions Into Mars FX

Mars FX reported 19% annual returns with zero losing months across its entire operating history. No legitimate investment fund has ever sustained a record like that through natural market conditions. Markets fluctuate by nature, and every real fund absorbs losses at some point along the way.

Despite that glaring anomaly, investors continued wiring money into the fund. By February 2024, the US fund alone had collected $331 million from clients. Total exposure across all associated funds reached close to $600 million in combined investor capital.

Novus told investors their money would flow to an unnamed technology partner based in the British Virgin Islands.

The firm labeled this arrangement as “proprietary and sensitive,” refusing to disclose the partner’s identity to investors. Hundreds of millions changed hands without investors knowing where their funds were actually going.

That unnamed partner was later identified as TRFX. According to reports, TRFX claims its trading platform had stopped operating in 2022—two full years before Mars FX was still actively raising capital from new investors.

Deloitte Faces Legal Action While Regulators Propose Looser Oversight Rules

Bull Theory captured the scale of the problem on X, writing, “A fund that never loses money is not a good fund. It is a fund hiding something.” That observation now looks more accurate than many investors would have hoped when they first wired their money in.

Deloitte, one of the four largest audit firms globally, issued clean opinions on Mars FX financials year after year. A lawsuit filed against the firm alleges it never independently verified that the reported assets actually existed.

The 2024 offering documents showed TRFX was neither a licensed broker nor a regulated custodian, yet Deloitte noted no significant concerns in its audit the same year.

The SEC, CFTC, UK Financial Conduct Authority, and British Virgin Islands regulators are all now involved in active investigations.

The FBI and a Manhattan grand jury have also opened proceedings into the matter. No charges have been filed, and the money remains entirely unaccounted for.

Arizona small business owner CarolAnn Tutera, 70, lost money in the earlier GPB Capital fraud and was defrauded again through Mars FX.

She said plainly: “I’m really fed up with finance guys on Wall Street.” Her frustration reflects a system that failed her twice.

Meanwhile, US regulators this week formally proposed eliminating filing requirements for smaller hedge funds and cutting enforcement staff at agencies responsible for catching exactly this kind of fraud.

The post Mars FX Hedge Fund Collapse: $600 Million Missing and Nobody Knows Where It Went appeared first on Blockonomi.

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