The IFSC International Financial Services Commission of Belize has revoked the license of Oasis Global FX. This termination comes nearly five months after the regulator suspended Oasis on the back of the CFTC’s allegation that charged the FX broker with facilitating a Ponzi scheme.
As per the reports from CFTC, the company owners defrauded 700 investors out of more than $75 million.
Due to the illegal nature of its conduct, the online trading firm has been instructed by the IFSC to cease and desist from providing financial services and engaging in finance-oriented activities. Should Oasis continues providing professional investment services to domestic clients without proper authorization, the practice will be considered a criminal offense.
Belize’s financial watchdog further explains that “on 8th October 2019, the International Financial Services Commission revoked the Licence for Trading in Financial and Commodity-based Derivatives Instrument and other Securities – reference number IFSC/60/483/TS/19 – issued to Oasis Global FX, S.A.” The regulator has cited several laws that “authorises the Commission for good and proper cause and after giving the licensee an opportunity to make representations, cancel or suspend a licence granted under the Act.”
CEO Spotlight: Alon Rajic on the Future of UK/EU Trade and EconomicsGo to article >>
More on Oasis scheme
Earlier this year, the Commodity Futures Trading Commission (CFTC) charged the owners of Oasis Global FX with illegally setting up and running a retail forex trading firm from 2011 through 2019.
The US derivatives regulator said defendants cold-called victims and convinced them to invest their monies with the company in Forex markets. The fraudsters even went as far as to draft performance reports which falsely claimed their pools had achieved gross annual returns for investors of about 21 percent in 2017, and 22 percent in 2018.
Additionally, in order to shore up the fraud, they used a Ponzi-style scheme in which they paid over $28 million to early investors that they claimed represented profits but were, in fact, other investors’ funds.
For new participants, they were assured of receiving a minimum 12 percent guaranteed annual returns, while they were actually duped into a Ponzi scheme. To support the fraud, Oasis Global FX workers sent bogus account statements to clients, falsely showing positive returns on their investments, while they actually lost $21 million and misappropriated $47 million.