FVP Trade introduced itself as a broker with CFDs (Contracts for Difference) on Forex, Metals, Indices, Commodities and Cryptocurrencies. It had a large following in the East and then began to expand to Italy and throughout Europe. We covered the topic before it went down last July 20. In fact, the day after our article, the broker notified its clients that it was blocking the funds they had deposited on the platform, and since then there have been announcements of resumption of activity that have never been followed up.
The Arab partner
In early August there was the most bombastic campaign put on by these individuals to convince people that, in a short time, the broker would solve all problems and resume operations. Indeed, in those days, it was announced that its Middle Eastern partner Al-Mohannadi Group, with whom a partnership agreement had been signed on March 9, 2022 in Dubai, had decided to inject liquid capital to enable the broker to resume operations as soon as possible. In reality, even this announcement was of no practical consequence, and our initial verifications allowed us to establish that this exotic economic entity had simply never existed and that that was, in fact, the name used by Fvp Trade to enter the Arab market.
Sponsorships
To accredit itself as a solid and reliable entity in the Western world, Fvp Trade signed sponsorship agreements with a number of sports entities, such as the Blackbourn Rovers soccer team. The most sensational partnership was the one announced on July 8, 2022 with the Alpine – Renault Formula 1 team; a few weeks later there was a freeze on customer withdrawals, and in order to understand the evolution of this agreement, we questioned the top management of the Formula 1 team, who informed us that they no longer had any kind of relationship with FVP trade and could not comment on the economic and financial situation of this entity.
This clarification was very important because many selectors continued to promote FVP Trade fantasizing about the fabled resumption of activities also leveraging the fact that, having entered into this sponsorship, the broker’s economic situation was not dramatic.
Drama in the Far East
The Fvp Trade affair consigns to history a different attitude of law enforcement and financial market regulators in different parts of the world: in the Western Hemisphere, the affair was ignored, apart from rumors that the blocking of withdrawals by FVP Trade’s clients was provoked by the FCA of the United Kingdom, to check whether this entity had been responsible for acts of money laundering.
In the Far East, however, the issue has deflagrated resoundingly leading the Reserve Bank of India to issue an Alert List, which includes the names of applications and companies that have not been authorized to deal in currency or operate electronic trading platforms for FX transactions, and among them is FVP Trade. Seizures and arrests have been made in Vietnam as a result of complaints from those defrauded by FVP Trade, numbering in the hundreds, who have lost all their savings and their economic situation has reached such dramatic levels that Vietnamese state TV has devoted large segments in major news broadcasts to the affair.
The conclusion is that FVP trade was yet another Ponzi scheme, to be added to all the others that are littering the cryptocurrency industry. A Ponzi scheme done right, studied in detail to make an immediate impression and bring in new people. The advice is always the same: study well the schemes you intend to invest in to understand how value is generated and not be dazzled by promises of mind-blowing returns.
When in doubt, ask someone knowledgeable. We are available to everyone. Our e-mail address is: [email protected]
