Daily fraud update: 26th December

Chris Lee

CFTC responds in Ian Dibb case

A major US regulator has hit back at the CEO of a firm which stands accused of foreign exchange fraud.

The Commodity Futures and Trading Commission (CFTC) has responded in court in New York to arguments made by Ian Dibb, who is the chief executive officer of TFS-ICAP – as well as claims made by the head of emerging markets brokering, Jeremy Woolfenden.

The firm is accused of allowing its brokers both in the UK and in the US to create fake conditions in the foreign exchange markets in an attempt to mislead clients.

The firm supposedly permitted brokers to deceive by allowing false trades, bids and offers to appear before clients – leading them to behave in particular ways.

According to the CFTC, this was a major part of the firm’s business activities.

The practices are sometimes called “printing trades” or “flying prices”.

Dibb claimed that the CFTC had mistakenly applied Section 4( c )( a) of the Commodity Exchange Act to his case.

That section prohibits the generation of fictitious sales, and also stops firms from publishing false prices.

It is against the law for a firm to “offer to enter into, enter into, or confirm the execution of a transaction” if the sale in question is “a fictitious sale; or

[that]

is used to cause any price to be reported, registered, or recorded that is not a true and bona fide price”.

However, the CFTC has responded to the claims by continuing to accuse TFS-ICAP of publishing false prices on its technological brokerage platform.

The case continues.

Russian bomb threats are linked to crypto fraud

A series of bomb threats in Russia have been linked to a web of cryptocurrency fraud claims.

A senior Russian businessman named Konstantin Malofeyev has been told by those carrying out the threats that he must pay back 120 bitcoins, a figure worth around $90,000.

He is accused of having stolen the money from a cryptocurrency exchange called WEX.

The bomb threats have been made against a wide range of key environments in Russian cities, including shopping centres and law courts.

It is understood that 8,000 buildings have been hit by the bomb threats.

Malofeyev set up his own investment funds but is now on a list of sanctions from the EU and the US over claims that he sent cash to a group of separatists in the Ukraine who were fighting in favour of the Russian government.

However, he has since denied that he was at all involved in the alleged bitcoin fraud.

WEX has since been hit by a number of problems relating to allegations of fraud.

Its domain names were removed at one stage, and this was quickly followed by the organisation being closed down.

It stood accused by the New Zealand Domain Name Commission of failing to provide accurate contact details when it registered.


Chris Lee

Latest news

Forex vs Crypto: What’s Better For Beginner Traders?
The crypto and forex markets are two of the world’s most popular among investors and traders. Read more
Three Great Technical Analysis Tools for Forex Trading
You don’t have to be very technical minded to make use of technical analysis in your forex trading. Read more

Safest Forex Brokers 2024

Broker Info Best In Customer Satisfaction Score
#1 73% of retail CFD accounts lose money. Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
4.9
#2 Blackbull LogoYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
4.8
#3 AvaTrade LogoYour capital is at risk Founded: 2006 Globally regulated broker
Number One Broker
BEST CUSTOMER SUPPORT Visit broker
4.9
#4 plus500 logo 80 april 2024* 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money Founded: 2008 Global CFD Provider
Number One Broker
Best Trading App Visit broker
5
#5 Between 74-89 % of retail investor accounts lose money when trading CFDs Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
4.9
#6 Forex Broker eToro Logo76% of CFD traders lose money Founded: 2007 Global CFD & FX Broker
Number One Broker
ALL-INCLUSIVE TRADING PLATFORM Visit broker
4.9
#7 XM LogoYour capital is at risk Founded: 2009, 2015 and 2017 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
5
#8 FxPro LogoYour capital is at risk Founded: 2006 CFD and Cryptocurrency Broker
Number One Broker
CFD and Cryptocurrency Visit broker

    Forex Fraud Certified Brokers

    AvaTrade logo
    plus500 logo 80 april 2024
    eToro Logo
    BlackBull Logo Small
    FxPro logo
    FXTM Logo
    XM Logo
    CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.