It’s stunning. Before the eyes of the world public, the scandal of the DAX listed Wirecard unfolded over years while the BaFin did nothing but file complaints against investigative journalists and traders. BaFin has the legal mandate to protect the capital market and investors. Despite numerous warnings and circumstantial evidence, it has not fulfilled this mandate. BaFin must be accused of gross negligence and embezzlement.
On 25 July 2020, the Austrian Financial Market Authority FMA issued an investor warning against Joshua Development Ltd and its new broker scam 10CryptoMarket (www.10cryptomarket.com). In the past years, the Joshua Group has operated a number of scams via various dummy companies such as Joshua Consulting Ltd, Joshua Partners EOOD, or Joshua Development Ltd. Financial market supervisory authorities have issued corresponding investor warnings against the Joshua Group.
The Spanish financial market supervisory authority CNMV this week issued an investor warning against the unauthorized and thus illegally operating Forex broker DBFX Limited (www.dbfxtrades.com). According to information on the website, the company is registered in Vanuatu and is a subsidiary of the CySEC-registered investment company Belight Capital Group Ltd. The company’s license has been suspended in April 2020.
On June 1, 2020, the FCA suspended some investment companies regulated by CySEC for their unfair sales practices. These firms allegedly used unauthorized celebrity endorsements on social media as part of their marketing. One of these investment firms was Rodeler Ltd and its brand 24option. Just a few hours later, CySEC also temporarily suspended Rodeler Ltd and ordered them to take necessary actions in order to comply with regulatory provisions within one month. R.I.P Rodeler and 24option.
Whistleblowers are perhaps the most important weapon in the fight against cybercrime, scams and regulatory violations. The U.S. SEC recently awarded $3.8 million to a whistleblower who provided significant information that helped the SEC disrupt an ongoing fraudulent scheme. The resulting enforcement action returned millions of dollars to harmed investors.
Suddenly everyone is wondering. Suddenly, information about Wirecard’s strange business practices appears everywhere. The involvement of the DAX-listed Wirecard as a payment processor in high-risk businesses such as porn, gambling, or online trading but also the support of illegal and fraudulent transactions such as binary options or marijuana trading are suddenly accepted reality.