Daily fraud update: 26th November

Chris Lee

Accused Nigerian forex scammer remanded in custody

A man from Nigeria who is accused of carrying out a scam foreign exchange transaction has been remanded in custody.

Ismaila Mustapha, who is also known as Mompha, submitted a not guilty plea to over 10 counts.

The counts include everything from unauthorised foreign exchange trading to money laundering.

Overall, he is accused of perpetrating a scam worth N33bn naira – equivalent to approximately $90m and £70m.

He has also been accused of not complying with the rules of the country’s Federal Ministry of Industry, Trade and Investment.

Mompha, who is well-known online in Nigeria, was accused alongside a firm called Islamob Global Investments Ltd.

The charges were brought by the Economic and Financial Crimes Commission (EFCC).

There have been a number of twists and turns to the story already.

Mompha was taken into custody on 19th October at the Nnamdi Azikiwe International Airport in the Nigerian city of Abuja.

He later attempted to sue the EFCC for N5m naira, stating that he had experienced wrongful detention.

Illegal crypto seen as big “black market” in China

A prominent official in China has hit out at perceived problems with the Chinese cryptocurrency market.

Yedong Zhu, who is the president of the Beijing Blockchain Technology Application Association, said that there were several thousand criminal crypto organisations in the major Asian economy.

Speaking to a state-run media organisation in the country, Zhu said he believes that there are just 4,000 Chinese crypto firms who are in fact looking into blockchain development.

More broadly, according to Zhu, there are apparently 25,000 companies in the country which are attempting to issue their own cryptocurrencies or related tokens.

It is understood that the People’s Bank of China, which is the country’s central bank, is working alongside other regulators to attempt to remove criminal crypto firms from the country’s tech scene.

It is claimed by some that cybercrime, including blockchain-related crimes, now has a value of over $10bn.

This comes after the Chinese government announced significant funding for organisations in the blockchain sphere.

Overall, $2bn is believed to have been earmarked for crypto firms to use.

However, Zhu pointed out that ongoing attempts by the Chinese government to increase the popularity of blockchain in the country could mean that fraudsters are able to gain more access to the market.

“We need to make sure the blockchain firms that illegal raise funds and commit financial frauds are not included in the government blockchain support programs”, he is quoted as saying.

Recently, a double figure number of staff members from growing Chinese crypto exchange BISS were told that they were out of a job – and were later arrested.

They stand accused of crimes relating to cryptocurrencies.

However, BISS itself has said that it will work alongside authorities.


Chris Lee

Latest news

Cybercrime still on the rise – be wary of potential scams
While our attention may be drawn to the latest news regarding the COVID-19 pandemic or the Tokyo Olympic Games, cybercrime statistics continue to grow unabated in the shadows. Read more
How to Learn to Trade Unpredictable Summer Markets
Recent events in the financial markets have left traders and investors dazed and confused. Read more

Safest Forest Brokers 2020

Broker Info Best In Customer Satisfaction Score
#1 ForexTime LogoYour capital is at risk Founded: 2011 Global CFD & FX Broker
Number One Broker
BEST FOREX BROKER Visit broker
5
#2 ForexTB logoYour capital is at risk Founded: 2015 Global Forex & CFD Broker
Number One Broker
LOWEST FEES Visit broker
4.9
#3 Tickmill forex broker logoYour capital is at risk Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
4.9
#4 BlackBull MarketsYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
4.8
#5 Forex Broker Pepperstone LogoCFDs and FX 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. Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
4.9

    Forex Fraud Certified Brokers

    XM Logo
    Exness Small Logo
    IQ Option Logo
    AvaTrade logo
    Pepperstone
    skilling logo
    City Index Logo
    ATFX Logo
    Vantage FX logo
    FXTM Logo
    OctaFX Logo
    IC Markets Logo
    HYCM Logo
    Forex.com Logo
    LegacyFX Small Logo
    BlackBull Markets Logo