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JadeFx shut down by the CFTC

Discussion in 'Scam Alerts' started by Scam Investigations Committee, Mar 16, 2011.

  1. Scam Investigations Committee

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    JadeFx shut down by the CFTC

    The complaints started on March 2nd in the reviews. A number of reviewers reported issues connecting to JadeFx's MT4 servers.. On March 7th, FPA member Horacio Ofman reported in the forums that the Jade FxLtd's website was down and that metatrader wouldn't connect to their servers. He also quoted an email they sent to clients discussing options including bankruptcy and conplete shutdown of the company. FPA member LuckyLuke72 reported getting the same message.

    On March 14th, reviewer Steve from Singapore submitted a link to a CFTC Press Release that came out on March 9th. The charges made by the CFTC were very serious. The text of the press release reads...

    There isn't too much more to be said that's not in the CFTC press release. The only good part of this that we can see is that the problem is smaller than that with some other scam brokers.

    We encourage all account holders to contact the CFTC immediately.


    Original complaint against Jade Fx

    FPA Scam Confirmation for JadeFx.com

    FPA Review Page for JadeFx.com

    CFTC Press release regarding JadeFx
     
  2. Pharaoh

    Pharaoh Colonel

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    Looks like "We're based in Belize so the CFTC can't touch us" doesn't work as well as it used to.
     
  3. PipStar

    PipStar Sergeant

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    The problem as I read from the filed documents is that they were not based in Belize, JadeFX were lying about this. They were located in the USA.
    And they also had U.S customers which as you know is prohibited unless they are registered with CFTC. Jade lied about this also.
     
  4. awsl

    awsl Private, 1st Class

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    This dude is mostly likely to pay a fine, set up another brokerage firm elsewhere to continue the scam.
     
  5. hkarnick

    hkarnick Recruit

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    Careless but no deliberate scam

    I was a client of JadeFX for over a year and throughout experienced they / he did an excellent job providing service to me as a trader, be it by spread, prompt execution, withdrawal, notices - everything worked in a way he deserved an excellent score as compared to the brokers on the market.

    From discussions in the DonnaForex.com JadeFX forum I got the impression, however, that he obviously is a sort of excellent technical guy who on the other side does not care too much about regulations and proper internal funds procedures: Careless in that respect. But I cannot see any intention of scamming.

    I joined an initiative in the above mentioned forum to contact CFTC hoping to recover a great deal of my remaining funds at JadeFX.

    Hartmut
     
  6. hyperbolic

    hyperbolic Private, 1st Class

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    I was a client with JadeFX until June of 2010. Made a decent profit. I closed my account after they sent notice that they would no longer work with US clients. Withdrawal was prompt. This CFTC action is a surprise to me.
     
  7. Marketjoy Trader

    Marketjoy Trader Private, 1st Class

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    Is it just about being technical

    I am sort of an excellent technical guy too! Can i also become a broker, and of course with my technically excellent friend Bill Gates?
     
  8. ClickbankForexRobots

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    I had an account with JadeFX since November 2009. I never had any issues with them. Support by email and phone was very swift, deposits and withdrawals were fast and the platform was excellent. The whole debacle is a great suprise and shame.

    Now we need to work at getting our money out.
     
  9. Brittany

    Brittany Recruit

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    Did you read this part of the CFTC complaint:

    "Instead of segregating customer money into separate accounts, Omukwe allegedly pooled all customer funds together into bank accounts that he exclusively controlled. From these bank accounts, only a portion of customer money was traded in forex."

    How is that not a deliberate scam?
     
  10. Chrisbenjy

    Chrisbenjy Recruit

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    It sounds to me like a 'victim-less' crime. I don't think the legal action is because they were refusing payments to clients, etc, but rather because they weren't following industry protocols.
     

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