The authorities in Malaysia have received 72 complaints from alleged victims of TriumphFX, which, according to locals, is a fraudulent offshore forex broker. The victims lost over MYR 23.7 million (over USD 5.3 million) to the so-called “syndicate,” the Federal Commercial Crime Investigation Department (CCID) revealed to the local media.
“The syndicate is believed to have been active since September 2019 and is linked to losses totalling RM23.7 million to date,” said Bukit Aman CCID Director Datuk Seri Ramli Mohamed Yoosuf.
Warnings Came Early
Malaysia flagged TriumphFX as early as 2020, and the country’s regulator also added the broker to its warning list. Singapore followed suit the following year, as MAS warned against TriumphFX.
The primary websites associated with TriumphFX are currently not reachable.
The investment scheme promised monthly returns of between 4 and 7 per cent. Local investigations also revealed that the syndicate lured victims through Zoom chats.
Malaysian authorities are now examining 10 investment cases against the alleged perpetrators, which carry a prison sentence of between one and 10 years. The potential punishment also includes whipping and a monetary penalty.
Furthermore, Malaysian authorities have identified a TriumphFX clone, which also offers forex investment schemes and markets itself on social media. The clone even promises “profits as soon as three hours after the investment is made.”
“Between 2024 and now, we have opened 23 investigation papers involving losses of RM243,376.90,” Yoosuf said regarding the clone platform.
Financial scams are rampant in Malaysia. Earlier, the Malaysian Humanitarian Organisation (MHO) reported another scam, believed to have been managed by locals, that defrauded 77 victims of MYR 48 million. According to MHO Secretary General Hishammuddin Hashim, the company, registered in Seychelles, used 30 shell companies.
CySEC’s Actions Against TriumphFX
TriumphFX operated from loosely regulated offshore venues and held an operational licence from the regulator in Cyprus. Interestingly, the Cypriot company, although having the same owners, is moving away from the TriumphFX brand and is now known as ShineTrades, which offers similar forex and CFDs trading.
The Cypriot Securities and Exchange Commission (CySEC) suspended the shareholder rights of TriumphFX’s sole indirect shareholder, Chong Chun Hseung, over management issues in December 2023 and recently extended the order for another six months.
However, Hong Kong’s Securities and Futures Commission (SFC) appears to have been the first regulator to flag TriumphFX in 2015. The Asian regulator raised concerns against Triumph Global (Asia) Limited and its brand, TFX Global, which used a local address to offer services to clients in the special administrative region. However, the company did not have the appropriate SFC licences to operate in Hong Kong and was then managed by Triumph International Limited, which was located in the British Virgin Islands.
This article was written by Arnab Shome at www.financemagnates.com.
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