41 People Were Trialed for 5 Million Yuan’s Fraud in Anhui

On the busy forex market, new brokers of mixed qualities emerge nearly everyday. Although regulation authorities around the world are making great efforts to crack down on illegal forex brokers, yet it remains a challenge to curb illicit practices such as inducing negative balance, manipulating investor‘s account or pocketing investor’s loss.

Recently, 41 people were trialed for fraud at a local court in Southern Chinas Anhui Province. Li Bing, the main offender, was sentenced to 13 years in prison and fined a million yuan. It was reported that the group of the accused purchased a trading software system that can control the level of profits and losses shown to investors. With the system, they established “Baiying International Commodity Exchange”, a web-based platform that claims to offer trading of forex, gold, Bitcoins and Litecoins.

After that, the companys marketing agents created fake identities - usually successful, rich and attractive young men and women - through WeChat and approached their targets of the opposite sex. Having won the trust of the victims through their deceptive words, the swindlers would then coax investors into making deposits at the platform by sending screenshots that showed non-exist high profits. Auditing shows the group has defrauded altogether 5,268,078.85 yuan, a colossal sum equivalent to the household income of several average families.

Looking back at the RCFX fraud case in Malaysia a few years ago, a group consisting of 10 investors ended up losing 703,000 ringgits (about US$169,724.7706) to illegal broker RCFX, which adopted a tactic similar to that in the million yuans fraud case in Anhui.

It is beyond imagine that how much the investors would have suffered from the consequences of such scams. Unfortunately, there are still plenty of investors that fall victim to broker scams every year. WikiFX reminds investors to mind the cappers that lurk around and try to befriend you in order to gain your trust and swindle your money. Never make deposits at any broker out of impulse before you check its compliance and other information thoroughly.