Currently, the GlobalMarkets broker scam (also known as Global Markets or Glob Markets) may be found online at www.glob-markets.pro. Previously, Cubic Services Ltd., based in the Seychelles, ran it. Max LLC, St. Vincent and the Grenadines, is the operator of the BudsFX scam, which is run behind the www.budsfx.com domain. As of right now, it appears that both frauds have completed their cycle of fraud; none accepts payment. This usually indicates that the con artists have moved to a different brand. Both scams have been operating on the SirixTrader platform (www.sirixtrader.com) and are proud members of the trading network of Leverate Financial Services Ltd, which is regulated by the CySEC.
Warnings from regulations
The Belgian Financial Supervisory Authority (FSMA) issued a warning to investors in September 2019 on the GlobalMarkets fraud. The websites www.glob-markets.com, www.global-markets.net, and www.glob-markets.co were being used in the fraud at the time. The GlobalMarkets scam and its operator were the subject of a warning to investors published by the Spanish regulator CNMV in July 2019. In January 2020, the UK FCA sent a warning letter to GlobalMarkets and its operator, Cubic Services Ltd. In November 2020, investor warnings concerning the BudsFX fraud were released by the UK FCA and the Swiss FINMA. The scam’s address is listed as Max Högger Gasse in Zurich in each of the warnings.
Leverate is unaffected by scams.
Both scams used the same boiler rooms in Belgrade, Serbia, the Comunico88 (www.comunico88.rs) and the Global-Tech, and they were both based on the SirixTrader architecture. Remarkably, despite the regulators’ warnings, these scams are still active on the Sirixtrader site today. Surprisingly, on a CySEC-regulated CIF trading infrastructure, the two broker scams about which many European regulators have given warnings for years are permitted to function as white-label solutions. Using algorithms or manual checks, Leverate Financial Services Ltd might easily detect and prevent scams. Additionally, this would be required by law and regulation. Hey, it’s CySEC, though.
The Cyprus financial regulator is the Cyprus Securities and Exchange Commission, or CySEC for short. Operating under EU legislation, CySEC complies with the European MiFID financial harmonisation law in terms of financial regulations.
CySEC has registered a sizable number of foreign retail forex brokers. For many binary options brokers, CySEC was the preferred regulator prior to 2018.
As a public corporate organisation, CySEC was established in 2001 under section 5 of the Cyprus Securities and Exchange Commission (Establishment and Responsibilities) Law of 2001. CySEC joined the European MiFID regulation at the same time as Cyprus joined the EU in 2004, providing companies registered there access to all European markets. However, the financial regulatory structure that CySEC enforced for what was once thought to be a tax haven was drastically altered upon the EU’s membership and adoption of the Euro. CySEC issued a regulatory change on May 4, 2012, pertaining to the categorization of binary options as financial instruments. As a result, platforms for binary options that are based in Cyprus—where the majority of them do—had to be subject to regulation. As a result, CySEC became the first financial regulator in the world to officially acknowledge and control binary options as financial instruments.
On July 10, 2019, CySEC permanently prohibited providing binary options trading to retail traders, following the implementation of a temporary ban on the products in July 2018.
The following are the duties of CySEC:
- to oversee and manage the trading activities of the Cyprus Stock Exchange, as well as the Stock Exchange’s listed companies, brokers, and brokerage firms.
- to oversee and administer mutual fund management firms, collective investment funds, licensed investment services organisations, and investment advisors.
- to authorise investment firms, including brokerage houses, brokers, and consultants, to operate.
- against applying disciplinary actions and administrative consequences against investment consultants, brokerage houses, brokers, and any other natural or legal person covered by the Stock Market Laws.
A recent change to the law governing CySEC’s duties has given it considerable authority over the organisations it oversees, allowing it to: In a recent amendment to the Law governing CySEC and its responsibility it has received significant power over the entities that it regulates in that it may carry out investigations, enter premises and search as well as to share any findings with foreign regulators.
Fraud is defined by law as the deliberate use of deception to get unfair or illegal benefit or to deny a victim their legal rights. Fraud can be illegal under civil or criminal law; for example, a victim of fraud may sue the perpetrator to stop the fraud or obtain financial compensation; or fraud may not result in any loss of money, property, or legal rights but nevertheless constitute a component of another civil or criminal wrong. The goal of fraud can be financial gain or other advantages, such as getting a passport, travel visa, driver’s license, or mortgage fraud, in which case the offender makes false claims in an effort to qualify for a mortgage.
In conclusion, Leverate provides technology, regulated trading infrastructure, and white label solutions to help scammers. Leverate could assist the authorities in uncovering the investor fraud as he is aware of the identity of the con artists. If only they desired to, that is.
In addition, Cubic Services Ltd.’s website, www.cubic-services.com, is still accessible. The business provides payment consultancy services there. We used the website’s contact form to request information, and we have not received a response as of yet.