CFTC Takes Action on Traders Domain Scam: $283 Million Fraud Exposed

Traders Domain, a broker that started in 2018, seemed like a trustworthy platform. It offered trading services for forex and cryptocurrencies, with different account options like Standard, ECN, Islamic, PAMM, and MINI BTC.

The minimum deposit was $100, which made it look affordable for investors. But what seemed like a good opportunity turned into a disaster for thousands of investors.

What is The Traders Domain?

At first, Traders Domain looked like a legit trading platform. It promised high returns on things like gold trading and forex.

The website had a professional look, and it attracted investors from all over the world.

However, the company wasn’t licensed by any real financial authorities, which made its operations illegal in countries like the UK. In 2022, the U.S.

Commodity Futures Trading Commission (CFTC) put Traders Domain on its Red List for running unregulated activities. It turned out to be part of a large scam.

The scam got worse when investors were told to send money through Savvy Wallet, a fake crypto payment system.

This tricked investors into thinking their money was safe, but they were actually being scammed. In the end, the platform took around $145 million from hundreds of investors.

Traders Domain Lawsuit Update

The CFTC’s lawsuit revealed the full scope of the scam. Traders Domain ran a Ponzi scheme that scammed over 2,000 customers, with losses totaling at least $283 million.

Some leaked investor data suggests the total could be as much as $3.3 billion.

Instead of using the money for trading, the company sent funds to third-party bank accounts controlled by its agents, who used the money for other payments and to keep the Ponzi scheme going.

The CFTC wants the court to stop Traders Domain from breaking any more laws and to return the stolen money to investors.

They are also asking for penalties against those involved.

In September 2023, the CFTC filed a lawsuit against Traders Domain, and the court ordered the company’s assets to be frozen.

The lawsuit mentions several violations of the Commodity Exchange Act, and a Temporary Receiver was appointed to manage the company’s assets and determine how much investors are owed.

On October 11, 2023, the case was unsealed, and more legal actions are expected.

A hearing is scheduled for October 29, 2023, to discuss further steps, including possibly suing Traders Domain’s top earners.

Some of these people might be MLM owners or high-level affiliates, which could make it harder to recover the money.

The arrest of OmegaPro co-founder Andreas Szakacs in Turkey in July 2024, and the disappearance of other key figures like Dilawar Singh, adds more mystery to the case.

While it’s too soon to know if criminal charges will follow, the CFTC’s lawsuit is a big step toward justice.

As the case moves forward, investors are encouraged to stay updated. The CFTC’s efforts to freeze assets and get the money back offer some hope for those impacted by this massive scam.

Our Review

From the start, Traders Domain had signs of being a scam, such as its lack of a real license and its use of a fake payment processor.

It promised big profits in forex and gold trading, but in reality, it was a Ponzi scheme. The platform looked professional, and the promise of quick returns fooled many investors.

Unfortunately, many didn’t notice the red flags until it was too late.

The scam also involved people known for running multi-level marketing (MLM) schemes.

OmegaPro, a similar scam linked to Traders Domain, collapsed in 2022, causing losses of around $4 billion.

The CFTC’s lawsuit against key players like Mike Sims and Ted Safranko highlights how deep the scam went.

Recently, many people have received emails claiming they’re eligible for compensation from a Katz privacy settlement.