On March 27th, at a financial and forex expo in Hong Kong, several forex platforms were publicly shamed with banners. TraderKnows aims to expose one of them today. The name of this company will sound familiar as it is the infamous Pluton Forex, which swindled billions from millions of innocent investors. The platform being exposed this time is PGM, a new scheme spun off from Pluton Forex.
Does PGM have any regulatory oversight? Why is this happening?
PGM (short for PRIMETIME GLOBAL MARKETS) claims to have an AFSL license, and indeed, it can be found on the Australian Securities and Investments Commission (ASIC) website. However, this license is merely bait. Can this license truly guarantee the safety of investors? Let TraderKnows break it down for you.
This is PGM's AFSL license, which contains comprehensive information such as the company's full name, license number, and issue date. The AFSL license authorizes a company or individual to provide specific financial services in Australia, ensuring they meet regulatory standards.
Does this make you think PGM is legitimate? However, if you look closely at the final line, which details the financial services that the licensee is authorized to provide, there are restrictions on deposit and payment-related financial products, limited only to wholesale clients!
In other words, PGM is attracting a large number of retail clients in China, which is beyond their authorized business scope.
Furthermore, the Australian court has already ruled that brokers regulated by ASIC cannot provide services to Chinese clients. This ruling was made because companies like PGM exploit ASIC's regulatory image to siphon off the hard-earned money of countless innocent investors. So even if their AFSL license were to allow services for retail clients, their rampant money-making behaviors in China would still be non-compliant.
Original link: https://financefeeds.com/asic-regulated-brokers-should-not-serve-customers-in-china-australian-court-rules/
Publicly shamed with banners, website shutdown, PGM fully exposed
At the March 27th financial and forex expo, where PGM was a sponsoring exhibitor, it fully partook in the event with its own booth. The expectation was to leverage the expo’s exposure to attract more investors. However, what met them was not a wave of new clients, but angry investors. What did PGM do wrong for Chinese investors from various regions to come together, travel long distances, and display these bilingual banners?
After reviewing comments from multiple platforms and TraderKnows, the complaints were primarily about withdrawal issues. Users recounted a detailed account: Abnormal trading occurred on December 30, 2024, leading to significant client losses. When clients attempted to withdraw, PGM froze their accounts, promising to unfreeze them in 15 working days. After this period, accounts remained frozen, with PGM claiming new client funds were necessary to release the existing funds. Clients suspected PGM was operating a Ponzi scheme and demanded evidence of misconduct, but PGM failed to provide it. Ultimately, PGM declared a permanent freeze on victims’ accounts.
Currently, there is widespread outcry against PGM on social media, making it unsurprising that they would face backlash at such events.
The infamous Pluton Forex with a sordid history, PGM's predecessor
Even though this scam happened some time ago, TraderKnows has managed to gather information online to present this scheme as comprehensively as possible.
PTFX Pluton entered the Chinese market in 2016, claiming Indonesian regulation, yet it is widely known that Indonesia does not regulate forex. When Pluton Forex further suggested checking the Ministry of Commerce website, the Chinese Consulate in Indonesia vehemently refuted this claim.
Nonetheless, with sophisticated MLM tactics and propaganda, Pluton Forex accumulated over 1.7 million members in three years. However, the scam eventually started showing cracks. In March 23, 2018, investor complaints began to surface on various platforms. Consequently, the Taijiang Criminal Investigation Branch in Fuzhou City launched an investigation into Pluton Forex's fraud.
In 2019, the 'time bomb' that was Pluton Forex was finally triggered. On December 19, 2019, a mass liquidation event occurred, causing many investors to lose their hard-earned savings overnight.
The next day, Pluton Forex denied responsibility, citing "data anomaly" that evening. After the Indonesian regulatory body confirmed Pluton's lack of regulatory status, the chairman Ivan himself intervened, asking investors for more time to "run away".
But investors were not fooled and started reporting to the authorities. On December 26, 2019, the Anti-MLM Network reported that police had started an investigation into PTFX, resulting in the arrest of key figures in places like Sanming, Fujian, and Nanfeng, Jiangxi.
Following the liquidation saga, Pluton Forex officially shut down its website on March 17, 2020.
On July 30, 2020, the People's Court of Meilie District in Sanming City, Fujian Province, held a public trial over the internet for the case of "PTFX Pluton Forex engaging in a financial pyramid scheme under the guise of 'forex trading'", charging them with "organizing and leading pyramid selling activities". Thus, the sensational Pluton Forex ended, leaving behind a trail of devastation and broken-hearted investors.
Final Thoughts
In conclusion, PGM is just a front using ASIC oversight as a facade while operating a Ponzi scheme. As PGM's website remains operational, investors are urged to stay away from this platform. It is hoped that investors can become more astute in recognizing such scams and remain vigilant. TraderKnows sincerely hopes for a world free of scams.
