EuroFX, a pyramid scheme that was shut down back in 2016, is still causing a bit of a stir because people can’t seem to find the money that was stolen. Grant Thornton, the group supervising the company’s break-up, has asked both the victim’s and the litigation’s funders for more money. As the administrator overseeing the full break-up of the company, Grant Thornton is now in need of funds to cover the legal costs of this slow liquidation process. Other than the legal fees, it plans to renew its efforts in recovering and distributing assets back to the creditors.
EuroFX, a business venture proved pyramid scheme, had one of the most legitimate-looking shells of its kind. Officially named Euro Forex Investment Limited, the company had a British CEO and headquarters. Their company operated through UK companies with a New Zealand financial service provider registration. This all culminated in a legitimate-seeming veneer that allowed the Forex trading scam to mislead thousands of investors, predominantly from China.
EuroFX seemed to have the strategy of “Flash! Bang! Alakazam!” They took on high profile licenses that made them appear legitimate. Since it went so against the grain of the usual scams, they managed to defraud almost 4 000 people out of more than $632.30 million. Of those, Grant Thornton maintains over 3 000 confirmed victims, located across the globe, but predominantly in China.
Grant Thornton explained that, if no extra funding is endorsed, EuroFX’s money hunt will be delayed or unsuccessful. Luckily, a partner at Grant Thornton, David Ingram, is in discussions with litigation funders to try and help this matter.
A Pyramid Scheme, Through and Through
EuroFX was wound up three years prior. This was enabled by a petition to the courts sent by Sun Yao, a creditor, and documents filed with the UK Companies’ registrar. The complexity, litigation costs, and the sheer length of the court case don’t give victims with empty pockets any form of an advantage. They had little to do with the merits of the case, but they are taking the brunt of it. As time goes on, their money is still in a state of being trapped somewhere or outright missing.
The man described as Euro FX’s CEO, David Byrne, was allowed to leave China after prosecutors dropped their investigation on him. However, several local marketers are serving prison sentences in the Mainland due to their actions in EuroFX.
Byrne, a man who had aspirations to outright buy the West Ham football team, returned to London in 2017. He reportedly offered to assist the police investigation in trying and finding out where the money went. Even as Byrne tried to help, Grant Thornton hasn’t recovered any of the assets related to EuroFX. The fraudulent company had promised returns as high as 12% per month, a hallmark of any form of scam.
A Word of Warning
Please be aware and careful about schemes like this. When we imagine illegal operations, we envision a back alley broker with three missing teeth and dark sunglasses. Those exist, and almost everyone knows they shouldn’t deal with them. The real threat is those that manage to blend in.
Any company that promises an incredibly high return rate should be suspected and investigated. Do not be greedy or desperate. Be logical and investigate any financial broker before fully committing to them.