24 Jun TriumphFX Scammed Malaysians: 72 Locals Lost $5 3 Million

Malaysia’s New Straits Times is reporting that more than MYR 23.7 million (USD $5.4 million) has been lost to date in an investment scam syndicate run by Retail FX and CFDs broker TriumphFX. TriumphFX Scam Uncovered as 72 Malaysians are defrauded, losing $5.3 million in a fraudulent forex investment scheme. The authorities in Malaysia have received 72 complaints from alleged victims of TriumphFX, which, according to locals, is a fraudulent offshore forex broker.

Want to know if TriumphFX is a scam, what regulations it holds, and how it operates? Look no further—this article is your ultimate guide to uncovering the truth about TriumphFX. We had recently reported that Cyprus financial regulator CySEC had extended a ban against TriumphFX controlling shareholder Chong Chun Hseung. In December 2023, the Cypriot Securities and Exchange Commission (CySEC) suspended the shareholder rights of TriumphFX’s sole indirect shareholder, Chong Chun Hseung, due to management concerns. Malaysian authorities are currently investigating 10 investment-related cases linked to the alleged perpetrators. If found guilty, they could face prison sentences ranging from one to 10 years, along with whipping and monetary penalties.

• We attempted to open a demo account to showcase the platform and execute some trades.
• A pyramid Ponzi scheme is a fraudulent investment scheme that involves promising high returns to investors, typically through a multi-level marketing structure.
• 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.
• It is essential to exercise caution when encountering investment opportunities that promise unusually high and consistent returns without a clear explanation of how those returns are generated.

Reports of Difficulties in Withdrawing Funds

Furthermore, there have been legal actions, regulatory warnings, and consequences such as financial losses suffered by victims. TriumphFX has been accused of making inconsistent or delayed payments to investors. Some investors have reported receiving payments sporadically or experiencing significant delays in receiving their expected returns. These inconsistencies can be indicative of a pyramid Ponzi scheme, where payouts heavily rely on recruiting new investors rather than generating legitimate profits.

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Risk Warning:

The regulator had flagged Triumph Global (Asia) Limited and its brand, TFX Global, for using a local address to offer services in Hong Kong without the necessary SFC licences. At the time, Triumph International Limited, based in the British Virgin Islands, managed the entity. We advise investors to conduct thorough research and investigation on the triumphfx scam company independently to make well-informed decisions when selecting a broker. To help you, our team has gathered some alternatives in this article that, in our opinion, are safer, especially for Asian investors who may be more exposed to alleged illegal activities.

Why Do People Call Triumphfx a Scam – A Pyramid Ponzi Scheme?

• Our website is focused on major segments in financial markets – stocks, currencies and commodities, and interactive in-depth explanation of key economic events and indicators.
• The regulator also directed Bybit to halt all advertising targeting Malaysian investors and to discontinue its Telegram support group for users in the country.
• These traders and forex trades did not exist, argued prosecutors, and investors were sent false statements that showed trades had taken place.
• Furthermore, these losses were often accompanied by a lack of recourse or explanation from the company.
• What transpired was that, at the coin’s launch, there was a correction to its price, around 0.60 USD, far from the company’s pledge.

They claim to employ skilled traders and advanced trading algorithms to generate substantial profits for their investors. However, there have been reports and complaints suggesting that the promised returns are unrealistic and unsustainable, raising suspicions about the legitimacy of TriumphFX’s investment offerings. Bybit and Zhou have been listed on the SC’s Investor Alert List since July 2021 for similar violations. The SC stated that these actions are necessary to ensure compliance with local regulations and to safeguard investors. It also reminded users that trading on unregistered platforms leaves them unprotected under Malaysian securities laws, increasing their exposure to financial risks.

Furthermore, these losses were often accompanied by a lack of recourse or explanation from the company. Victims of such experiences have reported difficulties in obtaining proper documentation or explanations regarding the loss of their investments. TriumphFX has been accused of utilizing fabricated testimonials and success stories to deceive potential investors. These testimonials often highlight extraordinary profits and financial success attributed to investing in TriumphFX.

Inconsistent or Delayed Payments to Investors

The company claims that skilled traders and advanced algorithms make its trades; however, the promised returns may be unrealistic and unsustainable, casting doubt on the legitimacy of TriumphFX. The regulator also directed Bybit to halt all advertising targeting Malaysian investors and to discontinue its Telegram support group for users in the country. The SC warned that operating a digital asset exchange (DAX) without being registered as a Recognised Market Operator (RMO) under Malaysia’s Capital Markets and Services Act 2007 is illegal. Investigations are ongoing as authorities work to dismantle the syndicate and recover losses. Fx Brokers Ratings assists you in identifying the ideal broker based on your specific needs by conducting in-depth evaluations of their services. Malaysia had flagged TriumphFX as early as 2020, placing the broker on its regulatory warning list.

Nevertheless, it is important to mention that TriumphFX is obligated to segregate investor funds from the company’s own funds, providing a higher level of security compared to a situation where this doesn’t exist. This means that in the case of bankruptcy of the firm, your funds will remain safe in a segregated account, in accordance with the Cyprus Securities and Exchange Commission client funds regulations. Despite the regulations mentioned earlier, there were already some warning signs about the company that appear to have been ignored by the regulators mentioned before. Most of the problems come from subsidiaries that allegedly directly relate to the company and are targeted at non-English speakers, more precisely Asian investors.

Increasing awareness through various channels helps empower individuals with knowledge and creates a collective effort to combat scams and promote financial literacy. The Times reported that Malaysia’s Federal Commercial Crime Investigation Department received 72 police reports (as of Feb 24) regarding TriumphFX. Police investigations revealed that TriumphFX initially lured its victims through Zoom chats. A total of RM23.7 million has been lost to the TriumphFX investment scam, with police receiving 72 reports as of Feb. 24, according to the Federal Commercial Crime Investigation Department (CCID). However, Hong Kong’s Securities and Futures Commission (SFC) was likely the first regulator to raise red flags about TriumphFX, issuing a warning as early as 2015.