Are Eastern European Forex Brokers Financing the Ukrainian Conflict?

A couple of well known forex fraud schemes have been named by local authorities and media as participating on both

In an unlikely turn of events, the well-known forex scheme suspect, Ukrainian brokerage Forex Trend has been blamed by local authorities for supporting separatist movements in Eastern Ukraine.

The Ukrainian Secret Service claims to have found evidence that the management of the company has colluded with a member Russian banker in order to divert money to fund the operations supporting pro-Russian separatist movements in around Donetsk and Luhansk.

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Fraudsters transferred funds through accounts of a biker’s club called “Midnight Wolves”

This vaguely reminds us of a Russian TV show, which alleged a connection between MMCIS and Ukrainian nationalists. According to the announcement issued by the Ukrainian Secret Service (USS), it found Russian Special Forces badges on the company’s premises.

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An official statement on the website of the USS reads, “The Ukrainian Secret Service has uncovered a mechanism designed to misappropriate funds of Ukrainian citizens in order to channel funds terrorists in Eastern Ukraine. A Russian banker under the moniker “The Surgeon” has colluded with the management of Forex Trend and financed separatists in Donetsk and Luhansk.”

“The findings suggest that the perpetrators have taken over the funds of citizens who thought they are investing in international financial markets. The fraudsters transferred funds through accounts of a bikers club called “Midnight Wolves,” the text adds.

The move reminds us of a report by Russian TV earlier this year, which claimed that the management of another fraudulent scheme in the region, MMCIS, supported Ukrainian nationalists.

While both reports make for a good story, we can’t take them at face value. In a region where propaganda tools are widely used to disseminate misinformation no conclusions can be drawn from one-sided reporting.

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