Developer of Russian Forex pyramid website faces 10 years in prison

Maria Nikolova

The man, born in 1988, was responsible for the technical aspect of the website’s work and got 10% of all deposits made by investors.

When it comes to financial fraud, the management of the scam is not the single party to be held responsible for the illegal actions. FinanceFeeds has already reported about such an approach when it comes to handling binary options fraud, and now, Russian prosecutors have demonstrated the same rigorous attitude towards an “IT guy” working for a Forex pyramid.

The police of Russia’s Amur district have recently completed their investigation into the actions of a Blagoveshchensk citizen, born in 1988. He is involved in a financial fraud scheme which has seen more than 300 people scammed.

According to local news sources, the name of the company that defrauded the investors is “Money-Trade”.

The police report does not mention the names of the defendants and the business. The police, however, elaborates that the website offered investors to pump money which was supposed to be traded on the Forex market. In March 2013, the police started receiving complaints from investors who were unable to withdraw their money. Eventually, the website stopped operating.

The police have conducted searches of the company’s premises and have confiscated equipment and documents. Fraud charges have been pressed against six employees of the firm – two of them cannot be located, however, and are hunted by the police.

One of the defendants has reached a settlement with investigators to have a separate legal case against him. The man in question was the developer of the website of the financial pyramid. He did the programming for the website and was responsible for all the technical aspects of its functioning. He got 10% of each investor deposit, thus receiving more than RUB 25 million (USD 439,344) in total.

The police have filed the documents with relation to this man with the court in Blagoveshchensk. The law envisages a maximum penalty of 10 years in prison for such a violation.

The number of financial pyramids in Russia remains high. Marat Safiulin, who heads the Federal Public-State Foundation for the Protection of Investor and Shareholder Rights, estimates that every 48 hours, a new financial pyramid emerges in Russia.

Read this next

Metaverse Gaming NFT

Despite crypto winter, Fastex grabs $23.2 million in Fasttoken token sale

Fasttoken, part of the Fastex web3 ecosystem, has secured $23.2 million in financing through the private and public token sales of its native cryptocurrency Fasttoken (FTN).

Digital Assets

Iran to repay Russian debts in gold-backed stablecoins

A high-ranking member of the Russian parliament confirmed reports that his country was in talks with Iran to create a stablecoin for foreign trade settlements, to replace the dollar, ruble and Iranian rial.

Digital Assets

SEC denies Cathie Wood’s bitcoin ETF for second time

The approval of a regulated crypto derivative is still looking far less likely, as the US regulators have once again denied Cathie Wood’s application for a long-awaited spot bitcoin exchange-traded fund (ETF).

Executive Moves

Pavel Spirin promoted to Scope Markets CEO following Rostro acquisition

Belize-based FX and CFDs brokerage Scope Markets has promoted Pavel Spirin to take on an expanded role as the company’s chief executive officer. He replaces the outgoing CEO Jacob Plattner, who has also been a major shareholder since he resigned his position as managing director at GKFX.

Retail FX

Public.com goes all-in on alternative investing, launches Rare Sneaker Portfolio

“The concept of curated Portfolios means that our members will be able to invest in categories like art, trading cards, royalties, and real estate without needing to become subject matter experts on individual assets.”

Industry News

State Street taps AWS and Microsoft for cloud and infrastructure solutions

“By standardizing and simplifying our technology operating model, we will be able to more quickly deploy client environments and launch new products and services, while continuing to enhance the resiliency of our technology environment and our business operations.”

Institutional FX

Bitpanda launches Investment-as-a-Service business for banks, fintechs, online platforms

“Financial institutions today have to ask themselves how they aim to cater the increasing demand for modern investing solutions. Building these Individually, means a high startup cost, and products that are often outdated before they are even launched.”

Institutional FX

Options expands market data feeds after partnership with Tools for Brokers

“Our integration with ACTIV Financial marked the beginning of a new era in market data availability and infrastructure. Our teams have come together to provide unparalleled, fully managed market data services alongside Options’ global connectivity and infrastructure.”

Industry News

Recruitment in financial services sector buoyant despite planned mass layoffs

“It remains to be seen what impact this will have on hiring levels within the financial services arena this quarter”, said APSCo, regarding the expected mass layoffs within the financial services sector in England & Wales. 

<