FSCS confirms Midas Financial Solutions operated Ponzi scheme

Maria Nikolova

The UK Financial Services Compensation Scheme has completed its investigation into Midas and can confirm that the firm does owe a civil liability to customers.

Less than a fortnight after the UK Financial Services Compensation Scheme (FSCS) informed the victims of Midas Financial Solutions (Scotland) that they may be eligible for compensation, the body has confirmed that Midas had been operating an illegal or so-called ‘Ponzi’ scheme.

FSCS says it has completed its investigation into Midas and can confirm that the firm does owe a civil liability to customers.

FSCS has been working with the Financial Conduct Authority (FCA) who have provided it with contact details of some of the investors in relation to the ‘Midas Scheme’. This means that FSCS is able to determine and pay the compensation owed to these investors without needing them to submit an application to FSCS. The body is now contacting these investors so they can be informed of the next steps.

If you believe you have been a victim of the Midas Scheme (relating to high yield, short term deposits) please wait to receive a letter. FSCS expects letters to be with investors by 20 March.

In February this year, FSCS said it was investigating the activities of Midas and, in particular, advice given to customers to invest in high-interest short term deposit accounts. The investments were touted as carrying attractive guaranteed returns placed on favourable terms due to the owner’s relationship with a well-known high street bank.

In reality, however, the high-interest accounts had never existed. Instead, investors’ money was placed into a so-called ‘Ponzi Scheme’ operated by the owner of Midas.

Read this next

Digital Assets

Talos acquired Cloudwall for a better portfolio management system

Cloudwall’s additional expertise in portfolio risk systems further positions Talos at the forefront of portfolio management systems across spot, futures, perps, and options.

Digital Assets

Bybit’s Bitcoin market share explodes, up by 400%

“This milestone is a testament to our sharp trading products and the loyalty of our users. As the industry evolves, Bybit remains at the forefront, ready to set new standards in the crypto trading world.”

Crypto Insider

Why Self-Custody is the Key to Secure Crypto Trading

Crypto trading is fast gaining popularity; as of writing, the total market capitalization stands at $2.3 trillion, double what it was at the onset of the 2021 bull market.

Industry News

UK FCA sues Lee Steven Maggs for FX scam Kube Trading

‘Kube Trading’ allegedly received around £2.67 million for FX trading and concealed significant losses from investors.

Market News

AUD/USD Soars Following Inflation Report

Australia’s CPI surge hints at prolonged tight monetary policy. Watch the Aussie dollar as US economic data looms.

Institutional FX

GCEX reports drop in turnover in 2023 due to crypto winter

“The crypto winter had a huge impact across the industry, and GCEX was no exception. However, in response to the decline in revenue, we have been resilient and adaptive, navigating our costs effectively and diversifying revenue streams such as introducing staking services for institutional and professional clients.”

Institutional FX

FxGrow taps Integral’s SaaS brokerage workflow

“FxGrow’s decision to partner with us is indicative of the growing advantage for brokers to leverage tier-one institutional-grade technology while maintaining control over their own platform. Integral is well-positioned to provide the SaaS solutions that will enable these businesses to better compete in the market.”


FBS Financial Market Analysts Forecast Gold Prices to Rise to $2,800

FBS, a leading global broker that has recently launched an upgraded FBS app, projects gold price surge to $2,800 per ounce by the close of 2024.

Market News

Adapting to Global Economic Shifts Japan’s Monetary Policy in Focus

Amidst the evolving landscape of global economics, Japan’s monetary policy stands as a testament to adaptability and strategic foresight. The Bank of Japan (BoJ) has embarked on a nuanced approach to maintain stability while navigating the complexities of a changing financial environment.