Exclusive: Germany Issues Warrants against Boiler Room Scammers

Finance Magnates has learned from sources that the German authorities are cracking down on financial services scammers in Cyprus and other jurisdictions with the issuance of a number of arrest warrants. It appears that at least one actual arrest took place in the last few weeks with the individual in question facing extradition to Germany.

The crackdown seems to be focusing on unregulated brokers and underground boiler rooms, while, it is unclear whether these scammers are residing in Cyprus or have been in the past. No names of individuals or companies are known at this point.

Additionally, the Turkey-controlled region of Cyprus has reportedly become a new hotbed for scammers and those warrants may also be targeting individuals residing in those territories. That region has no regulations in place as it is outside the effective jurisdiction of the Cypriot authorities.

Finance Magnates have reached out to the German and Cypriot authorities for official confirmation and will update the story accordingly.

Other Arrests

As mentioned, the authorities have already arrested at least one person in Cyprus in the last few weeks, who is now awaiting extradition. Earlier in August, Alexander Vinnik, the alleged operator of BTC-e was extradited from Greece to the United States.

Last month, The Times of Israel reported that an Israeli national, who defrauded small-time investors over a million euros, was arrested at a Greek airport. That arrest also took place under a warrant obtained by the prosecutors in Germany.

Earlier in May, the Israeli police arrested Dmitry-Dima Leichtman (aka Dmitri Laikhtman), and Ran Thomas Peled, who runs a major FX affiliate, under the suspicion of criminal activity totaling millions of dollars.

Recently, tech giant Apple removed MetaTrader apps from App Store. Though the exact reason behind the move was not officially disclosed, it is believed to be in response to the rampant use of MetaTrader by unregulated brokers and scammers..