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Screenshot of a breaking news alert e-mail from Q2 2017
Russia has become a region in which regulatory oversight has been key to the development of its financial markets economy recently, as it strives to gain recognition on the international stage.
Today, CRFIN, the national regulatory authority in Russia, has issued a warning that a potential Ponzi scheme may be operating under the name of Forex Traders Consortium FX Garant, co-traders Inc.
According to CRFIN’s notice, this particular entity which operates under the website domain of www.traders-co.ru offers investors an income of 1 to 1.5% per day which equates to 2230% APR. Often, promises of extremely high returns have in the past been signs that the investment program is either a Ponzi scheme or a High Yield Investment Program, both of which the vast majority of global financial regulators have begun to clamp down on.
Additionally, CRFIN asserts that the scheme offered by Forex Traders Consortium FX Garant co-Traders Inc provides no objective guarantee payments claimed percent. Business model of the project does not have the degree of transparency, sufficient to recognize the possibility of these payments percent different way than previously due to customer deposits.
The Russian regulator continued to establish that information about the claimed “management company” and available licenses was absent, and on this basis the project organizers give the impression that the extremely high yield indicated by the firm can be guaranteed by means of a “Reserve Fund”, whose size and guarantee payments were not disclosed, and that those investing are exposed to potential loss of part or all of their investment amount.