Infinox Forex Broker Scam Uncovered

Financial markets are never free from fraudulent activities. Scammers use various tactics to lure investors and trick them into losing their money. One of its examples is the widely debated Infinox scam.

Apparently, Infinox Forex broker is a firm authorised and regulated by the FCA. However, it still faces allegations of running a scheme that made people lose large sums of money. So, what's the truth behind it?

A prologue to the Infinox scam

The Infinox scam story goes back to Christmas of 2019, when an Instagram influencer and self-proclaimed Forex trader was accused of scamming hundreds of investors. According to a documentary by BBC journalist Mobeen Azhar, the scammer was a former biosciences student at the University of Plymouth.

The student, who was in his early twenties, was identified as Mr. Gurvz. He offered copy trading services on his Instagram account, with more than one million followers. He maintained a lavish lifestyle on social media and is known for roaming around Plymouth in his rose-gold Maserati.

Allegedly Mr. Gurvz promoted the Bahamas-based Infinox Forex broker to his followers. However, the firm crashed towards the end of 2019, and investors lost millions in GBP.

Who is Mr. Gurvz, and how is he connected to the Infinox scam?

The real name of Mr. Gurvz is Gurvin Singh Dyal, a resident of Plymouth. Gurvin shares his knowledge on Forex trading and other online money-making ways on the Instagram platform.

Gurvin also keeps his followers posted about his luxurious lifestyle. He regularly shares pictures of his fancy cars, stays at lavish hotels, branded accessories, and travel vlogs.

Source

Mr. Gurvz belongs to a modest family and spent his childhood in Ilford, London. He dreamed of becoming a doctor, but because of his low A-level grades, he opted for biomedical science.

According to several Instagram posts, he struggled financially during his early years at university. That's why he took a course on online earning at the University of Plymouth. This started his journey towards becoming a Forex trader and later an affiliate marketer and drop shipping expert.

Gurvin Singh also launched his company, "GS3 Trades", through which he offered Forex copy trading services. He is also the CEO of the "Academy 2 Earn" platform, as per his Instagram bio. Through this platform, he offered various courses for online earnings, like affiliate marketing and dropshipping.

Allegedly investors lost around £4 million in the Infinox scam Allegedly, Mr. Gurvz also worked with the Bahamas-based Infinox broker and promoted its services through GS3 Trades. He encouraged his followers to invest in the platform and earn lucrative profits. His marketing prompted hundreds of people, including his close friends and family, to invest in the platform.

Initially, investors made great profits, but the platform suddenly halted withdrawals.

As per the BBC documentary, Jonathan, an investor who lost his funds, explained that Gurvin and his company restricted investors from withdrawing the money.

He said, “Gurvin and his administrators were like, 'If you withdraw, we'll kick you off the system. It will close all the trades. It will make everything go south.'." This was communicated to investors via a WhatsApp group.

At the end of 2019, the Forex broker finally crashed. An estimate of the total losses of investors’ assets is around £4 million.

Is Infinox regulated by the FCA?

Gurvin maintained to his followers that the platform is regulated by the FCA (Financial Conduct Authority) in the UK. The FCA is one of the strictest financial regulators in the world. However, the Infinox broker he promoted was in the Bahamas. That means people cannot claim compensation for their losses from the Financial Services Compensation Scheme or the Financial Ombudsman Services.

Following the allegations, the UK regulator also issued a warning against Mr. Gurvz and his GS3 Trades. The FCA mentioned that the firm is unlicensed and that consumers should deal with it cautiously.

Response from Mr. Gurvz to the scam allegations

After the FCA warning, the BBC published a four-part documentary named Scam Land: Money, Mayhem, and Maseratis. The documentary, released on BBC1, was based on Mobeen Azhar’s investigation. It accused Gurvin Singh Dyal of duping investors and covering the losses.

Gurvin Singh responded to the FCA warning and the BBC documentary in a post on Instagram. He posted a lengthy note on his account with the caption, "you've seen the fabricated version; now here are the facts".

Source: Mr. Gurvz

Mr. Gurvz mentioned in the post that he was always willing to cooperate with the FCA over the issue and even contacted the regulators back on 9 January, 2020.

On the Infinox scam matter, Gurvin said he was working as an affiliate marketer for the firm. He stated that he "identified affiliate marketing as a way to earn an income". He maintained that he was young at that time and wanted to support his education.

In addition, Mr, Gurvz also explained how he started working with the Infinox Forex broker. He disclosed that an Infinox employee (Tristan Jones) and an affiliate marketer (Mirko Notturno) contacted him to promote the firm. According to Mr. Gurvz, Infinox contacted him because of his financial background.

Furthermore, Gurvin Singh maintained that he believed the firm was registered with the UK regulators. He stated that he attended meetings in the company's central London office, which was its registered address. This helped Infinox seem like a genuine and legitimate broker.

Moreover, Mr. Gurvz upheld in his Instagram post that he “did not act dishonestly” toward his clients. According to him, he did take instructions from Infinox, but he did not handle clients’ funds. Gurvin Singh revealed that investors signed a direct contract with the Infinox brokerage. The agreement clearly outlined all the details regarding how and who would manage their assets.

Last year, Gurvin Singh Dyal also appeared in the Anything Goes with James English podcast. He further clarified his stance on the Infinox scam scandal in the podcast.

He mentioned in the podcast that several other affiliate marketers were promoting the company. But the company used his name as a scapegoat. He also shared how he rebuilt his reputation and what he has been doing to make money.

Infinox.com vs. Infinox.bs

Gurvin assured customers they would be dealing with the FCA-approved Forex broker, Infinox Capital. The right domain for the original site is Infinox.com. However, the link provided to the investors was related to a Bahamas offshore company with a Infinox.bs link.

After the crash, many investors asked questions from the UK-based brokerage. However, it has dismissed the allegations by saying that the firm is a ‘separate legal company’.

Anthony Stubbs, the CEO of the Bahamas Infinox Forex broker, holds Mr. Gurvz responsible for clients’ losses. However, he admitted that his firm was responsible for handling copy trades for clients.

Jay K. Mawji, the managing director of the UK-based firm, dismissed the allegations of the firm’s affiliation with either Mr. Gurvz or the Bahamanian brokerage. Mawji said that the Bahamian firm is a separate company and is not a part of his firm.

Who's to blame for the £4 million loss?

This scam story is quite complicated, where all the parties have distanced themselves from the matter. However, Metro.co.uk reported that some victims noticed that the contract emails they received were sent by Infinox Capital. It also mentioned that investors would be engaging with both firms.

Moreover, the victims revealed that when Gurvin restricted clients from withdrawing the funds and dealt harshly with the ones who questioned the policy, Infinox employees did not intervene. It indicates that they were supporting Gurvin’s actions.

In addition, an affiliate marketer who worked for the firm in the same capacity as Mr. Gurvz alleged that Infinox was using the Bahamas firm to run illegal schemes. He said the company forced everyone to open accounts on the "Bahamas server". This would allow the company to exploit the Caribbean's lax trading policies and tax havens.

In the Bahamas, traders can use strategies that are 16x riskier than what is allowed in Britain. It also allows traders to make more profit. However, Infinox leveraged the Bahamas regulations, allowing them to continue trades even when clients lost their assets. If the company were operated in the UK under the FCA regulations, they would have to close the trades immediately after 50% losses.

Another thing that indicates the involvement of the UK-based company in the Infinox scam is the source of the company’s revenue. According to a Metro.co.uk report, the company generated £9 million in revenue in 2019, of which £1 million was earned through the Caribbean market.

Bottom line

Infinox Capital is a British Forex broker that is authorised by FCA. In 2019, its name made headlines when investors lost around £4 million because of a scam. The company was allegedly running a dubious scheme through a Bahamas-based offshoot besides running an affiliate marketing program, which Infinox Capital has denied.

Affiliate marketers used their Instagram profiles to portray lavish lifestyles and promote the company's services. Meanwhile, relaxed Bahamian regulations allowed the firm to continue its illegal scheme.