Blackmailing Affiliate Stages Protest Against AETOS Capital Group
The protesters accused the Australian regulated firm of stealing their money and operating against local regulations.
UPDATE: AETOS Capital Exposes Chinese Affiliate’s Blackmail Attempt
Chinese forex traders and, to an even greater extent, Chinese affiliates are known for their activism whenever they think a firm has wronged them in any way. According to new media reports from China, a large group of traders and affiliates came to the local offices of an international broker in Heilongjiang Province in protest a few days ago.
The targeted company this time was AETOS Capital Group. It is regulated by the Australian Securities and Investments Commission (ASIC) as an FX broker, holding a local licence which authorizes AETOS to run a financial services business in Australia. However, according to the original report from our colleagues at waihuiTV, AETOS primarily targets the Chinese market and only has a staff of four people in Australia.
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It has been a common practice for China-centered brokers to seek regulations in Australia or New Zealand over the past years, as they are perceived as the most competent regulators in the Asia-Pacific region. As ASIC has seen that it needs to invest much of its time and resources to monitor firms having no significant client base in Australia, it recently clamped down on international brokers.
The protesters accused AETOS of stealing their money and operating against local regulations, but the exact details are unclear. It is known that the main organizers of the protest were former AETOS affiliates themselves. In the Chinese industry it is a common perception that affiliates hold most of the power in the trader-affiliate-broker relationship.
In January, there were two reported instances of heated protest at IronFX’s offices in Shanghai, culminating in a violent attempt to attack a company executive. This came after ex-IronFX affiliates went on television to accuse the broker of wrongdoing.
Why is not anyone writing something about Chinese traders who are the biggest scams and cheats, they want to make risk free money without taking any risk and will try to use any abusive means to achieve this.
Why is that always the broker is a scam?
Who is protecting the brokers from such clients?
Can FM comment further on AETOS or ASIC response?
AETOS has contacted us and we will provide updates soon. As for ASIC, regulators usually do not comment on such stories unless they commence an investigation of their own.
Marius@ you make a valid point, there are a number of China-based affiliates that have large teams of traders that trade on clients accounts by misusing campaigns and promotions, coupled with systems that use arbitrage strategies. For regulated, honest brokers there’s no way to come out of this because the affiliates put undue pressure on brokers with activity like the journalist mentioned above, they trade in a manner that brings down the client equity but boosts the amount of rebate, according to industry professionals. The Chinese affiliates and traders are not actually trading the market but are actually trading ‘the… Read more »
The picture is come from a customer who name is Silong Yang. Mr. Yang was charging back and asking AETSO pay all the loss since 2012 of the customers who introduced to AETOS to his personal bank account. The same time, Mr. Yang threaten AETOS he will be put big banners in the front of our offices and put it on website. The background of the big banner is very quiet. It is unlike the description of lots of brokers sue AETOS.
AETOS was report the case to Shanghai Police Station already to seeking help on legal procedure.
Please notice we have published an update on this story based on new information from the broker at:
http://www.financemagnates.com/forex/brokers/aetos-capital-exposes-chinese-affiliates-blackmail-attempt/
And in the meantime, your article might have cost the broker thousands in reputation, especially when competitors will start using it to destruct clients.
But of course you don’t care. Banner from clients = Broker is scam.
There are regulators, let them do their job.
Marius please enlighten us – who are the regulators in China that are supposed to do their job?
The title of the article was changed to reflect the updated information