James Ward, the founder behind the Apex Financial crypto Ponzi scheme, has been ordered to pay a $80,000 civil penalty after defrauding investors through his crypto platform. Apex Financial, which launched in 2021, centered around a token called APT that Ward created. The scheme allegedly defrauded at least 70 investors, amounting to $852,000.
In 2024, the SEC filed a lawsuit against Ward, accusing him of fraudulent activities related to the Apex Financial platform. Ward settled with the SEC in March 2025, but there was pushback from the court regarding the specifics of the settlement. The SEC had initially requested a civil penalty of $150,000, but Ward argued that the penalty should be lower, citing misleading statements made by the SEC. The SEC, however, pushed for a higher penalty based on the severity of the misconduct.
A hearing in September 2025 revealed that the court was not entirely in favor of either party. Ward’s defense, which included blaming misrepresentations on his lack of legal expertise, did not resonate with the court. Ward admitted to using ChatGPT to process deposition excerpts, which led to further complications in his defense. Despite his arguments, the court found that $85,000 was a fair civil penalty, factoring in Ward’s history of violations and the degree of intent involved in his actions.
This case is notable not just for its settlement but also for its broader implications on crypto regulation. The court also considered Ward’s prior misconduct, including his involvement in the JetCoin fraud and his attempt to destroy evidence during an FTC investigation. The $85,000 penalty brings the SEC’s case against Ward to a close, marking another chapter in the ongoing efforts to regulate and penalize fraudulent crypto activities.
