Latest from the crypto and forex fraud world: 10th September

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 10^th 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.

Chris Lee

Share

Tweet

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	Best Trading Conditions Visit broker	4.9
#2	Your capital is at risk Founded: 2014	Global Forex Broker	BEST SPREADS Visit broker	4.8
#3	Your capital is at risk Founded: 2006	Globally regulated broker	BEST CUSTOMER SUPPORT Visit broker	4.9
#4	81% 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	Best Trading App Visit broker	5
#5	Between 74-89 % of retail investor accounts lose money when trading CFDs Founded: 2010	Global Forex Broker	Low minimum deposit Visit broker	4.9
#6	76% of CFD traders lose money Founded: 2007	Global CFD & FX Broker	ALL-INCLUSIVE TRADING PLATFORM Visit broker	4.9
#7	Your capital is at risk Founded: 2009, 2015 and 2017	Global Forex Broker	Low minimum deposit Visit broker	5
#8	Your capital is at risk Founded: 2006	CFD and Cryptocurrency Broker	CFD and Cryptocurrency Visit broker

Forex Fraud Certified Brokers

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.