People who are trading on Forex will remember Ponzi scheme.
Let’s see what it is and how it works.
What is Finanzas Forex?
This was a system wide fraud that involved several companies including Finanzas Forex, Superior International Investments Corporation, German Cardona, Pedro Benevides, DWB Holding and so on. It sent market shockwaves from USA, UK and all the way to foreign countries such as India. A lot of company owners lost money within a day and it quickly changed investment market.
The United Stated Government reacted to this news by seizing financial funds of Evolution Market Group that was behind the strategy. They seized approximately $138 million in gold and silver as well as $40 million in bank funds. Needless to say, business management was held responsible and can no longer perform any exchange.
Every trader that lost money to this high-level fraud was eligible for free remission. Based on capital on your account (better yet, losses incurred), you will get a refund by the government.
US and European governing bodies have developed a new technical system that should monitor stock trade in future. Online trading strategies through a site are also monitored in real-time to prevent any fraud that is going live. They will continue employing these strict rules in future.
Best example of a fraud – Finanzas Forex
Finanzas Forex was just one of the companies that were involved in this scheme.
Previously regarded as a top European broker, they dealt with everything from stocks, bonds, binary options, currency trading and so on.
Like all other fraudulent brokers they provided high yields to their clients.
Company had headquarter in Panama which was one of the signals that could’ve told you they’re up to something (Panama doesn’t regulate corporate activities like European countries).
At the time, they were specializing in Forex market and binary option trading.
Even though all of this is behind us and people are mostly refunded for their loses, it begs the question should we continue being greedy on financial markets?
This scheme opened the eyes of numerous investors as there is no such thing as high profit without high risk. There is usually some kind of a fraud behind it so it’s necessary to be careful.
Have you traded with Finanzas Forex? What was your impression at the time and were you expecting it to be a fraud?
Share your views in the comments! Make sure to read other reviews on our website!