Overview: EFRI’s Progress Since January 2019
In January 2019, following the arrest of Uwe Lenhoff, founder of Option888, the European Funds Recovery Initiative (EFRI) launched its first campaign. This was soon followed by a campaign in February targeting fund recovery from XTraderFX and SafeMarkets after Gal Barak’s arrest. Subsequent campaigns addressed scams involving Blue Trading, AlgoTechs/BeAlgo, StoxMarket, and KayaFX. Over the past five months, more than 800 individuals have registered with these EFRI campaigns.
Impact: Dismantling Fraudulent Broker Networks
EFRI’s efforts have been instrumental in shutting down major broker scams such as Option888, XTraderFX, and SafeMarkets. These cases are currently under investigation by authorities across various jurisdictions. This progress has been achieved through collaboration with whistleblowers and victims who have become EFRI members. This marks the beginning of a broader initiative, with expectations of further actions by authorities and courts in the coming months.
Victim Support: Power of Attorney and Fund Recovery
Out of the 800 registered individuals, 566 have granted EFRI Power of Attorney to pursue the recovery of their stolen funds. The specifics regarding the number of Power of Attorney agreements and the volume of funds targeted for recovery are detailed in the accompanying Excel data.
Common Challenges Faced by Victims
Victims consistently report:
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Deception by aggressive boiler room agents using false information.
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Emotional distress, including shame, frustration, and depression due to financial losses.
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Lack of support from banks, authorities, and prosecutors, who often deny responsibility or fail to initiate investigations.
In response, the EFRI team, led by Elfi, maintains active communication with victims, law enforcement, and regulatory bodies across various jurisdictions to highlight the extensive fraud impacting EU retail investors. The team is dedicated to educating victims and reinforcing that they are not alone in their struggle.
Strategic Actions: Holding Service Providers Accountable
EFRI is committed to initiating collective actions against service providers implicated in these schemes. This includes filing money laundering and fraud complaints with relevant authorities such as prosecutors, ombudsmen, regulatory agencies, and consumer protection offices. The ultimate goal is to secure the return of stolen funds to the victims.
Next Steps: Amplifying Victim Voices
EFRI plans to:
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Publicly identify and approach all service providers involved in the fraudulent schemes.
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Undertake collective legal actions on behalf of victims authorized by Power of Attorney.
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Continue to update stakeholders on progress through platforms like Scam-Or Project.
By raising public awareness and advocating for victims, EFRI aims to drive significant changes in how such frauds are addressed and prevented in the future.