Are you interested in what’s taking place in the cryptocurrency and foreign exchange worlds at the moment when it comes to fraud?
Here’s your round-up of what’s happening as of 10th September.
Regulator hits forex trading firm with charges
A well-known US regulator has announced a civil enforcement case against a foreign exchange firm based in South Carolina.
The Commodity Futures Trading Commission (CFTC) said that it would bring the case against VOS Capital and the owner of the firm, Dominick Vincent Carducci.
He is accused of running a fraudulent sign-up scheme for a commodity pool which on the face of it traded retail foreign exchange on behalf of clients.
However, the CFTC says that this was not what happened in reality and that 30 or more participants in the commodity pool were brought into it on false pretences.
The defendants also allegedly took more than $1.1 million US dollars which was invested in the scheme.
These funds were then used for personal use, including cars and transport.
In a statement, the CFTC outlined how the alleged crimes began as far back as the summer of 2016.
“Starting in at least August 2016, according to the complaint, the defendants fraudulently solicited and misappropriated money from at least 30 individuals for pooled investments in retail forex”, the claim reads.
“Between August 2016 and September 2018, the defendants received at least $1.1 million from pool participants for investment in commodity pools that would purportedly trade forex.
“The defendants, however, never traded forex on behalf of pool participants, and concealed their fraud by issuing false account statements to the pool participants”, it adds.
In addition, the claim from the CFTC accused the defendants of telling those who signed up to the schemes that they would be able to make back profits in the region of 18% per month – and that they would not incur any losses.
They also promised that customers would be able to extract funds whenever they wished to.
The case continues.
If he is found guilty, Carducci may have to pay civil penalties, restitution and more.
Maltese regulator to move into crypto sphere
A regulator in Malta has announced that it will seek to begin monitoring crypto firms which operate in the country as part of an attempt to crack down on money laundering.
The small sovereign island state in Southern Europe has long since been known as a hub for financial innovation.
Now, the Malta Financial Services Authority (MFSA) wants to ensure that this reputation is not exploited.
In a strategic planning document, the organisation said it would make the most of technology in order to keep an eye on crypto firms operating out of the country – and that it would partner with other organisations in order to achieve its goals.
“We will continue to work closely with the FIAU [Financial Intelligence Analysis Unit] and other national and international authorities, including the newly set-up Malta Digital Innovation Authority (MDIA)”, it said.