The latest on fraud cases: 11th September

Chris Lee

Here’s the latest on the fraud cases reported in the cryptocurrencies and foreign exchange trading world as of 11th September.

Goldman Sachs forex executive accused of fraud

A man who headed up a forex trading team in India has been accused of carrying out fraud against his employer.

Ashwani Jhunjhunwala, who served as a vice president at the globally recognised financial services firm Goldman Sachs, is alleged to have turned to the fraud process after he lost a significant amount of cash playing online poker.

According to reports published in the Times of India, police in the local area were shocked when they investigated and found that Jhunjhunwala had allegedly been able to take the equivalent of over $5m out of the company’s bank account.

It is believed that Jhunjhunwala was in debt to the tune of 47 lakh rupees, which is equal to around $65,000 or £53,000.

This is understood to have come from a gambling addiction.

While he had taken out loans of his own, he was struggling to meet the repayments.

He apparently received information from a former colleague about a way to take cash from company accounts.

He allegedly went ahead with the process – but was then found out when another employee spotted that large transactions had been placed.

He is also alleged to have manipulated junior employees in an attempt to cover his tracks.

He is accused of asking one employee in his forex department to go and provide refreshments under the pretence of looking over the employee’s work – but then allegedly set up a cash transaction to the tune of several million dollars.

However, he was caught on CCTV.

Evidence of “pump and dump” crypto fraud published

A team of crypto researchers has revealed evidence which they suggest shows a “pump and dump” scheme in action for a major crypto token.

The researchers from AnChain.Ai appeared to show that the Chainlink token, which belongs to the Japanese message service firm LINE, had suffered the scam.

A pump and dump scam involves the scammers arranging for the value of a crypto asset they own to rise quickly, perhaps through misinformation.

The scammers then sell their assets at an optimal point, leaving those who were not in on the scam with worthless items.

According to a blog post published by the researchers, the price movements of the token over the period in question appear to indicate sudden rises and falls which are indicative of the scam.

It also identified some other key hallmarks of the scam type, including the use of a group of addresses as well as so-called “multiple jump addresses”, which appears to help cover tracks.

“Cryptocurrencies tend to be exceptionally vulnerable to this form of attack, as coins are often heavily concentrated in the hands of a comparatively small number of individuals, whose market activities can dramatically impact the coin price”, the researchers are quoted as saying.


Chris Lee

Latest news

How To Use ETFs To Trade The Current Market Conditions?
For investors, 2022 has been quite a year. Read more
Contagion Warning From Crypto Markets Could Be A Buy Signal
One of the reasons the 2020 market crash was so severe and sudden was that overextended investors sold out of positions to liquidate funds, which drove prices down further, and created a need for further selling. 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 BlackBull Markets LogoYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
4.8
#3 66% of retail CFD accounts lose money Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
4.9
#4 Forex Broker eToro Logo67% of CFD traders lose Founded: 2007 Global CFD & FX Broker
Number One Broker
ALL-INCLUSIVE TRADING PLATFORM Visit broker
4.9
#5 Forex Broker Pepperstone LogoBetween 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

    Forex Fraud Certified Brokers

    IC Markets Logo
    FXTM Logo
    Pepperstone Logo
    ATFX Logo
    AvaTrade logo
    skilling logo
    XM Logo
    OctaFX Logo
    BlackBull Markets Logo
    BDSwiss Logo
    Plus500 Small Logo
    LegacyFX Small Logo
    Forex.com Logo
    HYCM Logo
    City Index Logo
    IQ Option Logo
    Exness Small Logo