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XTraderFX Scam and the Wolf of Sofia – FCA regulated payment processor Cauri facilitated Gal Barak’s broker scam network

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The reports of FinTelegram about broker scams and the attackers behind them help damaged investors as well as authorities and lawyers. We have made this experience in the last two years and we are more than happy with that. It shows us that the fight against scammers is useful and necessary. We learned of another fund recovery success story in UK along with the exposure of another facilitating Fintech company.

Financial Mail Fund Recovery in the UK

Yesterday Tony Hetherington, investigative reporter and retail investors’ advocate with Financial Mail (www.thisismoney.co.uk), published a fund recovery success case based on the reports of FinTelegram. He helped a cheated UK retail investor of the illegal and fraudulent brokerage scheme XTraderFX of the detained Israeli scammer Gal Barak to get his money back.

The retail investor had made payments to XTraderFX with his credit card. The payments were made through GPay Ltd, one of Gal Barak’s companies. This GPay Ltd and/or a related company had apparently been accepted as a merchant with the FCA-regulated e-Money Institution (EMI) Cauri Ltd.

The notorious scam entity GPay was also accepted as a merchant by other payment services providers such as Payvision. This entity was used to process payments from the victims of Gal Barak‘s various broker scams – XTraderFX, SafeMarkets, OptionStars or Golden Markets.

Thanks to the information provided by FinTelegram and the intervention of Tony Hetherington, the retail investor got his money back. His bank NatWest was apparently able to identify XTraderFX and GPay as a scam on the basis of FinTelegram’s reports and provided cashback.

Cauri rejected our attempt at a chargeback, claiming that a cryptocurrency account had been credited. We believe the cryptocurrency account belongs to a scammer and have shared our concern with the merchant acquirer. We sympathise with Mr F, who has been the victim of a scam, and appreciate that this has been a very distressing experience for him.

NatWest statement to Tony Hetherington of This is Money

Thanks to Tony’s research and his discussions with NatWest Bank, we have discovered Cauri Ltd, another payment processor around Gal Barak‘s Broker Scam network.

Cauri Ltd was registered in the UK in 2015 and received an EMI license from the FCA with reference number 683817 in the same year, with Russian Nikolai Ionkin and Latvian Alexander Stepanov as directors. According to the UK Companies House, Cauri Ltd is controlled by Aleksandrs Stepanovs and E.D.M.S. Trading Limited (see OpenCorporates), registered in Cyprus.

A detailed report on Cauri Ltd will follow shortly.

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