Mandates from Affected Investors
In recent weeks, several hundred investors affected by fraudulent online brokerage platforms have issued legally valid Powers of Attorney (POA) to representatives acting on their behalf. These mandates authorize action to seek restitution for losses incurred through broker schemes such as Option888, Xmarkets, XTraderFX, SafeMarkets, StoxMarket, Blue Trading, and KayaFX. Collectively, these platforms have resulted in significant financial harm, with estimated losses reaching into the hundreds of millions of euros.
Various payment service providers (PSPs), both regulated and unregulated, facilitated transactions linked to these operations. Their involvement is now a key focus of efforts aimed at achieving financial redress.
Engagement with PSPs
Representatives acting under the authority of investor mandates have reached out to more than a dozen payment processing entities. These include unlicensed PSPs such as B2G, StronIT, Workplace Consulting, Condesk, and W2P Solutions, as well as regulated providers such as Payvision, UPayCard, and Fondy.
Communications have been conducted through formal channels, including registered mail, as well as via email and messaging platforms such as WhatsApp and Telegram. These outreach efforts are designed not only to seek cooperation in recovering lost funds but also to formally demonstrate that all reasonable legal steps are being taken to address the financial harm suffered by victims.
Challenges in Communication and Legal Implications
Many of the unlicensed entities are no longer reachable through traditional means. In numerous cases, these businesses have dissolved or vanished without trace. This raises broader questions about the oversight and responsibility of financial regulators in jurisdictions where these companies were active.
Moreover, there appears to be limited recognition among financial service providers of the gravity of their involvement. The processing of illicit funds constitutes a form of money laundering under international regulations, and the personal consequences for victims—both financial and emotional—are significant.
Evidence and Legal Developments
According to one public prosecutor involved in ongoing investigations, there is “an abundance of evidence” indicating that some payment processors knowingly facilitated fraudulent activity. Legal teams are reportedly determining the most appropriate steps to hold these entities accountable.
Targeting Beneficial Owners
In contrast to formal approaches, contacting the beneficial owners of certain unlicensed PSPs via direct messaging has proven more effective. Once identified, these individuals are more difficult to shield through corporate structures or legal obfuscation.
The pursuit of justice is ongoing. Through collaboration with victims, legal professionals, and whistleblowers, efforts continue to assert claims against all parties implicated in these fraudulent broker operations.
Community Participation Encouraged
Individuals with information regarding unlicensed payment service providers or the involvement of licensed PSPs in illicit schemes are encouraged to come forward. Collective awareness and action can contribute significantly to the prevention of similar cases in the future.