Russia’s Forex organization CRFIN blacklists Prometheus FX

Earlier today Russia’s Centre for Regulation in OTC Financial Instruments and Technologies (CRFIN) included another entry into its Black List of companies showing signs of fraudulent activities. The latest addition to the Black List is Prometheus FX, an investment company offering its services via the website

The company claims to have been founded in Greece in 2010 and to be operating on the interbank Forex market. Regardless of the lack of license for providing investment services, the company actively attracts investors with the help of Russian and English versions of its website.

According to CRFIN, the red flags about Prometheus FX include various matters such as promises of artificially high and guaranteed profits, high bonuses for attracting affiliates and clients, lack of objective guarantees for getting one’s investments back, lack of transparency on how the money is managed and misleading descriptions of business activities.

The addition of Prometheus FX to the Black List takes the number of entities in it to 37, with some of the most notorious entities including the now defunct FOREX MMCIS and Mill Trade.

CRFIN is the single Forex self-regulatory organization in Russia and is supposed to play a crucial role in the sector once the Forex bill becomes a law. Under the proposed rules, all Forex brokers active in Russia will have to obtain licenses from the Central Bank and will have to become members of CRFIN. The SRO will also be responsible for rules regarding FX software, as well as FX advertising.

For the time being, however, CRFIN has only advisory functions, with no legal powers to sanction fraudulent Forex companies luring Russian clients. The organization often issues warnings against brokers that show signs of pyramids.

For the full announcement by CRFIN on Prometheus FX, click here

Read Also: