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CySEC-regulated FXVC attacks European consumers with offshore entity Gstaad Brokers

CySEC regulated FXVC and Gstaad Brokers Network
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FXVC is operated by Finteractive Ltd (previously Centralspot Trading Ltd), a broker regulated by CySEC with the approved domain www.fxcv.com/eu under the license 238/14. Its offshore entity Gstaad Brokers Ltd, regulated by the FSA in Seychelles, operates on www.fxvc.com/int and illegally solicits EU residents, onboarding them without proper onboarding or KYC and AML verification. In April 2021, the UK FCA banned FXVC for its inappropriate practices, including misleading financial promotions. Moreover, the FXVC trading platform is used by big broker scams.

Binary options legacy

FXVC was initially a trading software company. The broker brand and domain registered with CySEC until 2020 was Opteck (www.opteck.com), which specializes in binary options. At that time, Finteractive Ltd was still called Centralspot Trading Ltd. Then, in 2020 Opteck was terminated, the company was renamed, and FXVC became the new brand for the regulated forex, indices, CFD, and a crypto broker.

The Opteck website has disappeared; the domain www.opteck.com is registered and parked with NameCheap.

EU residents welcome

Once registered via the FXVC offshore mutation (www.fxcv.com/int), new clients can immediately deposit unlimited funds (minimum €5,000). At this time, not even the client’s email is confirmed, let alone the required KYC/AML procedures. The FXVC offshore mutation website purports that it is not “directed at EU residents,” but registration is possible for them. No IP blocking is implemented; the country drop-down list includes the individual EU member states.

Gstaad Brokers and compliance

The Gstaad Brokers Ltd operates the offshore mutation of FXVC (www.fxvc.com/int) and, additionally, a clone site with the brand Gstaad Brokers (www.gstaadbrokersltd.com). Like the FXVC offshore mutation, Gstaad Brokers is attacking EU residents.

The FSA in Seychelles has not approved the Gstaad Brokers domain in the first place. On the website of Gstaad Brokers, it is claimed that they only accept institutional investors as customers. However, we were able to register as EU consumers without any problems.

Cypriot lawyer, tax, and compliant expert Ioannis Chasikos is named on the FSA registration page as the contact person for Gstaad Brokers Ltd. Chasikos also holds an Investment Advision Diploma from CySEC. Acting as the chief compliance officer for the FXVC Group is Diomidis Vasileiou (LinkedIn).

All payments have to be made with the reference 00021BAC- 20088 GSTAAD.

The bank accounts

Bank transfers from clients of FXVC offshore entity have to be made to the California Associated Foreign Exchange Inc (www.afex.com), which holds different bank accounts for the different currencies:

  • Euro account with IBAN DE39500109000018770014 at Bank of America in Frankfurt, Germany.
  • Dollar account at Deutsche Bank Trust Company Americas in New York,
  • GBP account at Bank of America in London (IBAN GB17BOFA165067454050).
  • AEB account for ustomers from the United Arab Emirates at Credit Suisse in Zurich (IBAN CH2604835098639512002).

Jean-Raphael Nahas (LinkedIn) serves as chief operating officer and director. Nikos Vassiliou (LinkedIn) is a director and AML officer of the company.

The scam connection

FXVC was known as a trading software company until a few years ago. The broker still uses its proprietary technology and platform and apparently licenses it to illegally operating brokers and scams. Both FXVC and Gstaad Brokers use the same platform as Infinity Capital, Victoria Coins, GFC Investment, or YorkCG scams.

Whether and how these scams are related to Finteractiv, FXVC, or Gstaad Brokers can only be guessed at this time. They may also share the boiler rooms in Belgrade, e.g., Parogan.

Preliminary conclusion

The FSA license in Seychelles does not entitle Gstaad Brokers Ltd to recruit EU residents for its regulated financial services. Notably, FXVC onboarding procedures are not compliant with ESMA and CySEC regulations. Deposits of large sums are possible without confirmation of email or identity or money laundering verification. The activities of Gstaad Brokers should be considered illegal and should force CySEC to take action. FXVC does not stand out for the first time due to unlawful or non-compliant behavior. The broker’s questionable approach resulted in a temporary CySEC suspension in 2019, an FCA ban in April 2021, and several fines.

The not clarified relationship between the FXVC group and the many scams operating on the same platform also raises critical questions.

Customers should avoid FXVC. A broker that circumvents financial laws and regulations with illegal offshore constructions is not trustworthy. It remains to be seen whether CySEC will be stricter under the new chairman George Theocharides.

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