Key Takeaways
- • Mars FX US LP, managed by David Choi, has collapsed with nearly $600 million missing, triggering criminal fraud investigations in the US and civil lawsuits across at least three nations involving allegations of forgery and money laundering.
- • The fund attracted investors with exceptional performance metrics—averaging 19% annual gains with zero monthly losses—before revealing itself as a fraudulent scheme, exemplifying how limited disclosure requirements enabled prolonged deception.
- • Deloitte, the fund's auditor, is being sued for signing off on financial statements prior to the 2025 collapse, raising accountability questions within the audit profession during a period of regulatory deregulation.
- • US prosecutors in Manhattan, the FBI, and a federal grand jury are investigating Mars FX and its sponsor Novus Capital Partners, with the matter also referred to the SEC, CFTC, and civil regulators in the UK and British Virgin Islands.
- • Novus Capital Partners is attempting to recover missing funds while blaming an unnamed technology company for the loss; the tech company counters that its platform ceased operations in 2022 and never worked with Mars FX.
Summary
Mars FX US LP, a hedge fund managed by David Choi, has collapsed with approximately $600 million unaccounted for, triggering one of the most significant fraud cases in recent hedge fund history. The fund initially presented an extraordinarily attractive investment profile, posting average annual returns of 19% with no monthly losses, characteristics that should have raised scrutiny but instead attracted capital from investors globally. The collapse in 2025 has now spawned multiple investigations and litigation across international jurisdictions.
Criminal and civil proceedings are now underway across multiple regulatory and judicial bodies. US prosecutors in Manhattan, alongside the Federal Bureau of Investigation and a federal grand jury, have launched a criminal fraud inquiry into Mars FX and its sponsor, Novus Capital Partners. The matter has been referred to the Securities and Exchange Commission, the Commodity Futures Trading Commission, and civil regulators in the United Kingdom and the British Virgin Islands. Allegations include forgery and money laundering, according to lawsuits filed in at least three nations. Deloitte, the blue-chip auditing firm that signed off on the fund's financial statements before its collapse, is facing legal action over its role in the fraudulent scheme.
The case illustrates vulnerabilities in the current regulatory environment for hedge funds. This fraud has emerged precisely as US regulators are proposing to eliminate filing requirements for smaller funds and narrow disclosures for larger ones—changes that would further reduce transparency and investor protection. Simultaneously, budget constraints affecting federal watchdog enforcement staff are diminishing prospects for fund recovery efforts. Novus Capital Partners is attempting to recover the missing capital but has cast blame on a technology company it says it employed; that tech company has responded by asserting its platform stopped operating in 2022 and never maintained a business relationship with Mars FX. Investor Jens Blomeyer from Germany, who committed $125,000, reflected on the scheme's psychological power: "Nobody understood the product, to be honest. We saw the returns, and we got blinded and greedy."
Criminal and civil proceedings are now underway across multiple regulatory and judicial bodies. US prosecutors in Manhattan, alongside the Federal Bureau of Investigation and a federal grand jury, have launched a criminal fraud inquiry into Mars FX and its sponsor, Novus Capital Partners. The matter has been referred to the Securities and Exchange Commission, the Commodity Futures Trading Commission, and civil regulators in the United Kingdom and the British Virgin Islands. Allegations include forgery and money laundering, according to lawsuits filed in at least three nations. Deloitte, the blue-chip auditing firm that signed off on the fund's financial statements before its collapse, is facing legal action over its role in the fraudulent scheme.
The case illustrates vulnerabilities in the current regulatory environment for hedge funds. This fraud has emerged precisely as US regulators are proposing to eliminate filing requirements for smaller funds and narrow disclosures for larger ones—changes that would further reduce transparency and investor protection. Simultaneously, budget constraints affecting federal watchdog enforcement staff are diminishing prospects for fund recovery efforts. Novus Capital Partners is attempting to recover the missing capital but has cast blame on a technology company it says it employed; that tech company has responded by asserting its platform stopped operating in 2022 and never maintained a business relationship with Mars FX. Investor Jens Blomeyer from Germany, who committed $125,000, reflected on the scheme's psychological power: "Nobody understood the product, to be honest. We saw the returns, and we got blinded and greedy."
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