DanFX fraudster arrested and extradited to Australia after years on the run

Rick Steves

In 2018, Daniel Ali was sentenced to two and half years’ imprisonment, to be suspended after the first six months in prison. His sentence is likely to be reviewed because of his escape to Europe. 

The Australian Securities and Investments Commission (ASIC) has announced that unlicensed foreign exchange trader Daniel Farook Ali has been charged with eight counts of fraud totaling $977,000 by the Brisbane Magistrates Court after being arrested and extradited from Poland.

Daniel Farook Ali had departed Australia on 8 May 2018 during an ongoing ASIC investigation into his conduct, leading to civil proceedings commenced by ASIC against him.

It took more than two years for a Queensland magistrate to issue a warrant in December 2020, following an application by ASIC. Daniel Ali was arrested in Poland a year later, in November 2021. The Polish Government granted his extradition in July 2022 after Mr. Ali consented to being extradited.

The whole operation had the participation of the Australian Federal Police’s Fugitive Apprehension Strike Team, the Commonwealth Attorney-General’s Department, the Commonwealth Director of Public Prosecutions (CDPP), and Polish authorities in relation.

Daniel Farook Ali appeared in Brisbane Magistrates Court on 18 August 2022 and was remanded in custody to appear again on 2 September 2022.

DanFX raised $13 million from over 200 investors

The matter is being prosecuted by the CDPP following the referral of a brief of evidence from ASIC, which alleges that between May 2016 and November 2017, Daniel Ali dishonestly used funds provided to him by investors for trading and investment purposes for unauthorized purposes, including to buy real estate and luxury cars for his family members and related companies, and to pay returns to other investors.

In some cases, the funds provided to the alleged fraudster by investors had come from investors’ self-managed superannuation accounts, the regulator added.

ASIC commenced proceedings in 2017 alleging that Daniel Ali, through DanFX, operated an unregistered managed investment scheme known as the Daniel Ali Scheme, which raised approximately $13 million from more than 200 investors.

On 23 July 2018, the Court found that:

  • Mr Ali, DanFX and two related companies operated the Daniel Ali Scheme, which was a managed investment scheme that was required to be registered under the Corporations Act but was not so registered;
  • Mr Ali contravened the Corporations Act by operating the Daniel Ali Scheme without holding an Australian financial services licence; and
  • Mr Ali contravened the Corporations Act by managing DanFX and two related companies, despite being disqualified from managing corporations due to a prior conviction for fraud.

In 2018, Daniel Ali was sentenced to two and half years’ imprisonment, to be suspended after the first six months in prison. His sentence is likely to be reviewed because of his escape to Europe.

Read this next


US and South Korea seek extradition of Luna founder Do Kwon

Both US and South Korean officials are seeking to extradite Terraform Labs CEO Do Kwon, just hours after he was arrested in Montenegro.

Retail FX

Pepperstone UK doubles profit, client assets in 2022

The London-based entity of Australian FX broker Pepperstone has reported its financials for the fiscal year ending June 30, 2022. The group had outperformed the last year’s flat performance, having doubled revenues and boosted the broker’s bottom line and shareholders’ fortunes.

Institutional FX

CLS FX volume rises to just shy of $2 trillion in February

Foreign exchange settlement provider, CLS Group saw strong volumes in February 2023 as the banking crisis continues to weigh on a world economy that’s yet to fully recover from the Russia-Ukraine war’s shocks.

Digital Assets

Binance restores trading after 2-hour outage

Binance suffered a breakdown on its trading engine that lasted for about two hours, but the premier cryptocurrency exchange finally managed to restore normal operations at around 14:00 UTC.

Digital Assets

Tether earns $700 million in Q1, taking excess reserves to $1.6 billion

Tether chief technology officer Paolo Ardoino said the world’s largest stablecoin issuer expects to earn more than $700 million in the January-Mach quarter, which will be added to the reserve backing its stablecoin (USDT).

Digital Assets

Narwhal Finance Secures $1M in Seed Funding Led by Animoca Ventures

Narwhal Finance received strong support from Animoca Ventures and angel investors in a $1 million seed funding round, reinforcing the company’s vision of providing an accessible platform to all.


SteelEye tries ChatGPT for market surveillance

This capability can be used as a starting point for initiating a surveillance investigation and to standardize workflow processes to boost the throughput and consistency of cases. It is also useful when analyzing communications in foreign languages, as the system returns the above insights in English regardless of the languages being used.

Industry News

SEC charges ex-Morgan Stanley advisor of NBA players after $13m fraud

Darryl Matthew Cohen was arrested this week and is facing three different federal counts of fraud, which could amount to 20 years in prison if convicted, besides the SEC complaint. 

Industry News

AWS FinTech Africa Accelerator launched, applications until April 27, 2023

Founders will be offered tech resources, expert guidance, and a global network of industry leaders, technologists, entrepreneurs, investors, associations, and partners, in order to build their fintech products.