Shanghai Qingpu People's Procuratorate prosecuted two suspects on suspicion of illegal business, which became the first case of illegal overseas futures business in Qingpu District. The two foreign exchange platforms involved in the case are Scope Market Skop and Libertex Flix. Although they both hold regulatory licenses, the two websites have certain security risks, such as the concentration of customer complaints and abnormal supervision.

What is the case of illegal trading of overseas futures? Are there problems with the two platforms involved, and should we stay away from them? Visualize will show you what's going on.

Illegal operation of overseas futures involved 500 million yuan, two people were prosecuted

The following is from Thoughtful Shanghai:

Without the approval of relevant departments, Song Ke, Shen Sixia and 13 others illegally operated various futures trading businesses such as foreign exchange margin, precious metals, crude oil and stock index in the name of overseas futures platforms Scope Market and Libertex in the office building in downtown Shanghai, with a total amount of illegal business of more than 500 million yuan. And in Shanghai Qingpu District set up a number of offices.

Song Ke, born in 1991, is engaged in the foreign exchange industry in Shanghai. In April 2019, he wanted to change jobs, and a friend of the foreign exchange circle, Lisa (in pursuit), recommended Scope Market to him. Lisa announced that the Scope Market platform has just been established in China and is headquartered in Cyprus, which can trade foreign exchange, precious metals, energy indexes and other products.

After inspecting Scope Market, Song Ke found that this overseas futures trading platform had not been approved by relevant state departments and was an illegal operation. However, Song Ke still chose to join this company due to the high salary and salary offered by the other party. He entered the company as a platform customer service, and his main responsibility was to introduce the platform spread, rebate, leverage and other information for the agents and customers who came to inquire, and to follow up with agents and customers. Due to Song Ke's experience in related industries, his salary quickly rose and he was soon appointed as the head of the Shanghai region.

In order to attract customer investment, Songke and several of its employees set up a number of offices in Qingpu District, Shanghai, and released publicity advertisements through the official website, Tiktok and other social platforms. At the same time, a number of salesmen made random calls to publicize to non-specific people that "investment in the Scope Market platform can be traded at any time, with 1:500 ultra-high leverage. Cash to the account is also very convenient and fast." After attracting clients, its team members also get a cut of the deal. However, in fact, only a very small proportion of the customers who invested in the platform were able to make a profit, and most of them lost money.

While attracting customer investment, Songke divided its subordinate jobs into several professional categories, including those responsible for advertising, customer service, and website design. In just one year, the company grew and grew.

In September 2020, Lisa found Song Ke and said that he was working as a platform manager of another type called "Libertex", which also took foreign exchange and futures trading as its main business, Lisa wanted to invite Song Ke to serve as an adviser on the platform, and Song Ke gladly agreed.

In fact, the company was also not approved by the relevant state departments, but Song Ke returned to the second time, and quickly "cooperated" with Shen Sixia, the sales team leader who joined the platform as early as January 2018, to conduct business promotion. Song Ke's position in the new company was also quickly promoted to become a manager, and Shen Sixia, as his "right-hand man", brought many customers for him, and the sales performance topped the entire company.

However, the two illegal business platforms did not escape the eye of the police, and in July 2021, the public security organs arrested 13 people including Song Ke. After review, Song Ke and Shen Sixia's name attracted customers to top up more than 100 million yuan, Song Ke made illegal profits of more than 450,000 yuan, Shen Sixia made illegal profits of 800,000 yuan, the total amount of illegal business of the two platforms reached more than 500 million yuan, the Shanghai Regulatory Bureau of the China Securities Regulatory Commission answered the letter, the two platforms have the characteristics of illegal futures business.

Song Ke and others carried out illegal margin trading without the approval of relevant state departments, seriously disrupting the national financial supervision order, and their behavior has violated the Criminal Law of the People's Republic of China, prosecutors have filed a prosecution against the two people. (All articles are pseudonyms)

It can be seen that although the above two platforms hold the regulatory license of CYSEC in Cyprus, there are still problems with the platforms, especially the serious problem of not being able to withdraw money. Earlier, Scope Market broke out the problem of not being able to withdraw money, because in September, Scope Market announced its withdrawal from China, but it did not solve the problem of withdrawing money from traders. It has been promised to solve the problem before October 15, but it has been delayed, and even some staff have the problem of unpaid wages. It can be seen that there are great problems in the Scope Market, and investors who are still in it must stay away from it as soon as possible.