Belgium’s Financial Services and Markets Authority has warned Validus about being a fraud.
As the FSMA warned on December 14;
The FSMA warns people about Validus, an overseas platform that sells training in Belgium to teach people how to trade complicated financial instruments like forex derivatives.
When you sign up for this kind of training, you get access to videos, webinars, and live chats that teach you all kinds of things about how the forex market works.
The FSMA is worried about the quality of these training courses, but there are also several other problems.
First, the FSMA wants to remind you that it is illegal in Belgium to sell derivative instruments that are traded on an electronic trading system and use leverage, such as certain forex instruments.
Second, this kind of training material is often passed around in a pyramid shape. Usually, these are called “MLM” (multi-level marketing) schemes, in which people are paid to bring in new members.
There seem to be a lot of (private) groups on social media where these MLM networks are active. It looks like these plans are mostly for young people.
There have also been many times when these instruments were used to trick people. In some cases, it turned out that the person making the offer had never done any real business.
The forex training that Validus offers is a cover for its Ponzi scheme.
Validus wants people to invest up to $10,000 in different cryptocurrencies. This is done because of the promise of a 300% ROI in the end.
Parwiz Daud and Mansour Tawafi, who used to scam with OneCoin, now run Validus out of Dubai.
Australia and New Zealand have also warned Validus users about fraud, in addition to Belgium.
In October 2022, 924,000 people went to Validus’ website, which was tracked by SimilarWeb. In November, 1.6 million people went there.
France (22%), Colombia (12%), the United States (8%), and the Netherlands (7%) are the countries that send the most people to Validus’ website.